What is the difference between a Company Ltd by shares and a Company Limited by guarantees?

The difference between the company Ltd by shares and a company Limited by guarantee is governed by the provisions of section 3(2) of the Company Act, Cap. 212. The company limited by shares is the one which liability of its members is limited by the memorandum to such amount, if any of unpaid shares held by them; whereas the company limited by guarantee is the one which has the liability of its members limited by the memorandum to such amount as the members may respectively thereby undertake to contribute to the assets of the company in the event of being wound up.