General principles of calls on contributories, Business Law and Ethics

Assignment Help:

General principles of Calls on contributories:

If it is necessary to make calls on contributories the liquidator draws up a list "A" of contributories who were members at the commencement of the winding up and a list "B" of contributories who were members within the year preceding the commencement of winding up.  A list B contributory has liability limited by the following principles:

(a) he is only liable to pay what is due on the shares which he previously held and only so much of the amount due on those shares as the present holder (a list A contributory) is unable to pay;

(b) he can only be required to contribute (within the limits stated in (a) above) in order to pay those debts of the company incurred before he ceased to be a member which are still owing.

As stated above a past member ceases to be liable altogether (on partly paid shares) if the company continues (without going into liquidation) for a year.


Related Discussions:- General principles of calls on contributories

Directors report - accounts and audit, Directors Report: By S.157 (1)...

Directors Report: By S.157 (1) the balance sheet must have attached to it a directors' report on the company's affairs, including the amount, if any, which they recommend shou

Minimum subscription - commencement of business, Minimum subscription - Com...

Minimum subscription - Commencement of business: If the minimum subscription was not raised the company can only commence business or exercise borrowing powers if:- a)

Explain the term res perit domino, QUESTION 1 Explain the following wor...

QUESTION 1 Explain the following words- 1. Promissory condition 2. Contingent condition 3. Condition precedent 4. Concurrent conditions 5. Conditions subsequent

Choice of name - name clause, Choice of Name - Name Clause: However, i...

Choice of Name - Name Clause: However, it might be relevant to note that the registrar of English companies, pursuant to his powers under the corresponding section of the Engl

Graphically illustrate a drp system, Question 1: Describe the types of ...

Question 1: Describe the types of pallets that exist, and suggest the one that is more suitable to an organization that has a high variety of low-value items, which high stock

State the two alternatives of policy clustering, State the two alternatives...

State the two alternatives of Policy Clustering That combines an element from each of these first two alternatives. One might think of it as a set of processes characterized by

Insurance law, Eagle Sales Company owns a warehouse, subject to a mortgage ...

Eagle Sales Company owns a warehouse, subject to a mortgage obtained from First National Bank. Separately, Eagle and First National obtain insurance policies from Good Hands Insura

Financial assistance for purchase of own shares, Financial Assistance For P...

Financial Assistance For Purchase Of Own Shares: i) Financial Assistance For Purchase Of Own Shares S.56 (1) of the Act renders it unlawful for a company to give there wher

State in brief about the monetary effects, State in brief aboput the Moneta...

State in brief aboput the Monetary Effects Besides real income effects there will also be monetary effects if nations seek to intervene in foreign exchange markets which govern

What are the obligations of the employer, Question 1: Constructive dism...

Question 1: Constructive dismissal is inherently different from dismissal in the sense that it is the employee who takes the initiative in considering the contract as having be

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