unlimited company

A type of *registered company whose members have an unlimited liability. Thus on winding-up, the company can make demands upon its members until it has sufficient funds to meet the creditors’ claims. The risk that members of unlimited companies assume is balanced by certain advantages: unlimited companies do not have to deliver their *accounts to the Companies Registry and they have more freedom to deal with their capital than limited companies. Unlimited companies may be formed with an *authorized capital, thus enabling them to issue shares and raise working capital, but members’ liability is not limited to the nominal value of these shares.