ABC Ltd. Took a loan of Rs. 50 lac from a Bank its growth and expansion plans. The company was unable to repay because of heavy losses. The company asked its shareholders to come forward and contribute towards repayment of loan. The shareholders to come forward and contribute towards repayment of loan. The shareholders refused as they had already paid the full amount due on their shares. Bank filed a case against ABC Ltd. The court said that company could not call shareholders to repay loan as they have no unpaid amount of shares. It was the duty of ABC Ltd. to use company's assets to repay loan.
(a) In the above case what kind of liability is enjoyed by the shareholders of ABC Ltd.?
(b) Which feature of company protected shareholders, i.e., owner of business not to pay?