Calls on contributories, Business Law and Ethics

Assignment Help:

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.


Related Discussions:- Calls on contributories

Problem question, how do i answer a problem question in law base on the law...

how do i answer a problem question in law base on the law of contract for final assesment

Maintenance of capital - raising of capital, Maintenance Of Capital: T...

Maintenance Of Capital: The issued share capital of a company limited by shares is the primary security for the company's creditors. In Re: Exchange Banking Co (Flitcroft's Ca

Relationship between morality, Question 1: (a) Distinguish social acco...

Question 1: (a) Distinguish social accounting from conventional (financial) accounting. (b) Discuss the practical and moral reasons for organizations to engage in social a

Discuss the procedural rules, QUESTION 1 Discuss the procedural rules, ...

QUESTION 1 Discuss the procedural rules, ways and effectiveness how a- (i) Civil case; and (ii) criminal case is brought to court QUESTION 2 Discuss the different

Reconstruction - take-over bid, Reconstruction Under S.280: The essent...

Reconstruction Under S.280: The essential features of this type of reconstruction have been described at 8.2.1(b).  It is subject to several disadvantages and is little used.

Judges of appeal, Judges of Appeal, Attorney and Registrar Judges of...

Judges of Appeal, Attorney and Registrar Judges of Appeal However a "judge of appeal" is a judge that who is appointed to the Court of Appeal. Attorney - General

What are the principles of good governance, Question 1: The question of...

Question 1: The question of morality of Public Servants has become a public issue nowadays. What according to you are the factors that have contributed to such a situation?

Define power, 1. How does the Melian dialogue represent key concepts such a...

1. How does the Melian dialogue represent key concepts such as self-interest, the balance of power, alliance, capabilities, empires and justice? Athenian leaders arrive on the is

Contracts of guarantee, Contracts of Guarantee However a contract of g...

Contracts of Guarantee However a contract of guarantee or suretyship is such a contract through one person to answer that for the debt, such default or miscarriage of another.

Corporate social responsibility, Corporate Social Responsibility (CSR) has ...

Corporate Social Responsibility (CSR) has become a key aspect in the activities of an organization in the context of environment and community development, employees, customer serv

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd