private limited: what's the liability limit?

[Daniel_H]

Hi all,
In a private limited company (Limited), i understand there's
the authorized share capital and the issued share capital.
do i understand correctly that the liability limit is the issued share capital and that the authorized share capital has nothing to do with the liability?

example: say, a company with only one shareholder has an authorized share capital of £ 800000 but an issued capital of only £ 200 of which £ 100 are paid.
do i understand correctly that in the worst liability case (unless there's some management fraud or so) the shareholder would risk losing the company plus having to pay the remaining £ 100, but not risk more?

if so, are there any disadvantages in having a high authorized share capital?

[Nick Dyer]

The liability is £100

I can't think of any advantages or not of a high share figure. When I carry out a credit check against a company, the authorised figure is meaningless. It's the paid up share figure that is relevant.