Unlimited Proprietary Company (With a Share Capital)
An unlimited proprietary company is a private company whose members have no limit placed on their individual liability to contribute to the debts of the company. As a consequence, the company is exempt from the prohibition on reduction of capital (s258A), which means money can be easily taken out of the company’s capital base. The clear disadvantage is that members have unlimited personal liability.
The unlimited liability company is used mainly by professional organisations carried on in a partnership (mainly accounting and legal firms).