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

Contributions of equity, Contributions of Equity Contributions of Equi...

Contributions of Equity Contributions of Equity as: Developed the so called maxims of equity and Provided additional remedies and Provided for the discovery of

Ways which affect the behaviour of the policy maker, Ways which affect the ...

Ways which affect the behaviour of the policy maker There may be at least three ways this uncertainty may affect the behaviour of the policy maker. a) He may chose mainly th

Directors liability, Directors liability: This was fraudulent preferen...

Directors liability: This was fraudulent preference and the bank must repay the sums received. The directors' liability under their guarantee to the bank then revived. A paym

Set of circumstances of policy maker, Set of circumstances of policy maker ...

Set of circumstances of policy maker The distinction leads to think what to say then, to a policy, which is feasible in only one set of circumstances. Then the expectations on

Disadvantages of subsidiary legislation, DISADVANTAGES: Whether delega...

DISADVANTAGES: Whether delegated or subsidiary legislation has been criticised just to a variety of reasons, the main ones being that it is:as; (a)   Less democratic Whe

Rights of guarantor against the debtor, Rights of Guarantor Against the Deb...

Rights of Guarantor Against the Debtor Therefore the guarantor's rights alongside the debtor are: like; (a) Before the payment has been made, whereas to compel the debtor t

Discuss the ethical issues, An employee at the supermarket you manage moppe...

An employee at the supermarket you manage mopped one of the aisles in the store and placed signs at the ends of the aisle to warn people not to use the aisle until the floor dried.

Explain who is a promoter according to law, Ahtesh is the promoter to a com...

Ahtesh is the promoter to a company not yet incorporated. As promoter he bought two excavators on behalf of the company as the latter would be building and running a hotel. While t

Company law, # difference between variation of class right and variation of...

# difference between variation of class right and variation of enjoyment

What is vicarious liability, What is vicarious liability? Liability of...

What is vicarious liability? Liability of the employer and employee: An employer may be liable like a result of a negligent action executed through the employee. It is term

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