Which type of company is always private and does not limit member liability?

The designation of a company as an unlimited company indicates that it does not impose any limit on the liability of its members. This means that if the company faces financial difficulties or debts, the members may be required to contribute to settling those debts without any prescribed upper limit. This characteristic sets unlimited companies apart from the other types of companies listed, which typically provide some form of liability protection to their members.

Private limited companies and public companies, for instance, are structured in such a way as to limit the financial risk of individual members to the amount they have invested or agreed to invest. In the case of a limited by guarantee company, the members' liability is typically limited to a fixed amount, such as a nominal fee.

Understanding the nature of an unlimited company is crucial for business owners and investors. They might choose this structure to maintain greater control and privacy over their operations, though it does come with the significant trade-off of accepting potentially unlimited financial liability.