Calls on contributories, Business Law and Ethics

Calls On Contributories:

                                      Every person who is a member of the company at the commencement of winding up and every past member is in principle liable to contribute to the company's assets whatever may be required to enable it to pay its debts in full.  Present and past members are therefore called "contributories". This serves to give present and past members the status of contributories with, for example, the right to petition for compulsory winding up. But if the company is limited by shares and its issued shares are fully paid the contributories have not liability to contribute anything in normal circumstances.

 A contributory may be liable to contribute in the following circumstances:

(a) if the shares which he holds or previously held are partly paid or if it is found that the rules on consideration have been breached in the allotment of shares as fully paid'

(b) if the company is limited by guarantee;

(c) if the company is unlimited.

As explained below the persons who are members at the time when liquidation commences are primarily liable (when there is any liability).  The liability of past members is very restricted.

Posted Date: 1/15/2013 5:11:14 AM | Location : United States







Related Discussions:- Calls on contributories, Assignment Help, Ask Question on Calls on contributories, Get Answer, Expert's Help, Calls on contributories Discussions

Write discussion on Calls on contributories
Your posts are moderated
Related Questions
a) Under these facts, what claim could Purchaser assert if she begin a lawsuit?  State the name of the claim only.   b)   What would Purchaser argue is her basis for such cla

What are the Consensus in the political stream Political events move along at their own pace, and according to their own dynamics and rules. Developments in the political sphe

Question 1: (a) Who is a director of a company and describe how he may be appointed. (b) What are the duties owed by directors under the Companies Act 2001? Question 2

ISSUE OF NON-STATE ACTORS The concept of Non-state actor is a recent political development, which has, so far, eluded a concise definition. There are no treaties or conventions

Legal Profession - Magistrates However the magistrate is an advocate that who is appointed through the Judicial Service Commission to the post of - The District M

Public Company - Registration Procedures: Consent to act as director (Form No 209) If any person is appointed director of the company by the articles which are to be deli

Legal Environment of Business Inventions "R Us (IRU) advertises invention development services and has aggressively advertised its services on-line, in magazines, and on radio

When operating a business, an owner has to make numerous decisions on a daily basis. In some cases, a decision may increase profits, but the owner is uncomfortable making such a de

Qualifications of Judge Hence for qualify to appointment as a judge of the High Court a person must either be as; An advocate of the High Court or may Have b

You are a Graduate Legal Officer employed in the Constitutional Policy Unit of the Australian Attorney-General's Department. Until this point, your supervisor, Rodger Dodger, has p