Winston owns shares in Beaver Mining NL and his friend Neville owns shares in Otter Pty Ltd.In the event of liquidation of both of these companies who would potentially have to pay the most per share?

Question

Quizplus · Accepted Answer

The liability of shareholders is up to the amount unpaid on their shares. Since Neville owns shares in Otter Pty Ltd, he would potentially have to pay the most per share in the event of liquidation. Winston, on the other hand, has no such liability as a shareholder in a listed company. The information provided does not suggest that the fact that Neville's shares are in an unlisted company or that Winston's shares are in a listed company imparts a significant difference in liabilities.

Winston Owns Shares in Beaver Mining NL and His Friend