1. The important feature of an unlimited company is that the liability of its members is unlimited.
2. Even though, the company is a separate legal personality and can trade in its own name, the members’ liability resembles that of a partnership.
3. However, it is to be noted that the members’ unlimited liability is to the company itself and not to the company’s creditors.
| Activity 1.2
|Question to Activity 1.2||Suggested answers to activity 1.2|