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An important duty of a member is to pay the money they are liable to pay by virtue of their membership. If a company is being wound up, each member has to contribute to the company’s debts based on their liability limits. In a company limited by shares, members are only committed to paying the price of the shares allotted to them. In the case of a company limited by guarantee, members are liable to contribute a set amount, which may be as low as E1. However, the members of a company with unlimited liability are liable to pay all of its debts if it is wound up.
It is also essential that members take part in supervising the performance of the company and its directors to protect their financial and other interests.
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