Explanation:

As per Section 2(92) of Companies Act, 2013, unlimited company is a company not having any limit on the liability of its members and the maximum liability of the member of company , in the event of its being wound up, might stretch up to the full extent of their assets to meet the obligations of the company by contributing to the assets. But members are not directly liable to the creditors of company. The liability of the members is only towards the Company and in the event of company being wound up,  the liquidator can ask the members to contribute to the assets of the company which will be used to discharge the liabilities of company.