no liability

noun

no liability

noun
1

Business, Law Australia A form of limited liability that may be used by mining companies, under which the shareholders may pay a company debt by surrendering shares in lieu of money.

  • It was originally estimated that the mill of the Kingsgate Molybdenite No Liability, Kingsgate, NSW, would have been completed by the end of March,[…].1918, Australian Mining, volume 11, page 210:
  • The use of no-liability companies is restricted to companies whose sole objective is mining, as designated by the Corporations Law. However, it is not necessary for a mining company to be a no-liability company.1993, Doing business in Australia, Price: Waterhouse & Co, Part 66, page 65:
1 more example
  • A company may be registered as a no liability company only if: (a) the company has a share capital; and (b) the company′s constitution states that its sole objects are mining purposes; and (c) the company has no contractual right under its constitution to recover calls made on its shares from a shareholder who fails to pay them.2011, Australian Corporations & Securities Legislation 2011: Corporations Act 2001, page 183:
Derived terms
NL
Related terms
limited liability

Entry derived from the Wiktionary, under licence CC BY-SA 4.0 — list of authors.