Question

Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R:
Assertion A: In case of fully-paid up share, the members can not be asked to contribute any further if the company goes into liquidation.
Reason R: The liability of the members of a company is limited to the amount remaining unpaid on the shares subscribed by them.
In the light of the above statements, choose the most appropriate answer from the options given below:

• A. Both A and R are correct and R is the correct explanation of A
• B. Both A and R are correct but R is NOT the correct explanation of A
• C. A is correct but R is not correct
• D. A is not correct but R is correct

Answer 1

Answer: (A)

Both A and R are correct and R is the correct explanation of A

Answer 2

The correct answer is (A) : Both A and R are correct and R is the correct explanation of A.