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

Loans - void contracts, Loans - Void Contracts However all loans made ...

Loans - Void Contracts However all loans made for an infant are void and irrevocable.  Since in Leslie Ltd. v. Sheill the infant defendant had obtained two advances of two hun

Necessity - law of agency and partnership, Necessity - Law of Agency an...

Necessity - Law of Agency and Partnership Therefore an agency of necessity may subsist either domestic or commercial: Commercial Agency of Necessity: Although

Oppression of minorities, OPPRESSION OF  MINORITIES:                  ...

OPPRESSION OF  MINORITIES:                    7.3.1 Section 211 of the Act provides that any member of a company who complains that the affairs of the company are being conduc

Winding up on, WINDING UP ON: "THE JUST AND EQUITABLE GROUND": Un...

WINDING UP ON: "THE JUST AND EQUITABLE GROUND": Unlike the other five grounds this one is widely interpreted and it is no objection that the petition is based on facts u

Appointment by directors, APPOINTMENT BY DIRECTORS: The company first ...

APPOINTMENT BY DIRECTORS: The company first auditors of may be appointed through the directors at any time before the first annual general meeting, and auditors so appointed s

Subsidiary legislation, SUBSIDIARY LEGISLATION: Moreover this is subor...

SUBSIDIARY LEGISLATION: Moreover this is subordinate or delegated indirect legislation. In fact section 2 of the Interpretation and General Provisions Act specified subsidi

Need for research design, Need for research Design: a. It facilities ...

Need for research Design: a. It facilities the smooth sailing of the various research operations thereby making research as efficient as possible yielding maximal inf

Business Ethis, . what’s the Kantian case for condemning Clone CD for their...

. what’s the Kantian case for condemning Clone CD for their project?

Confidentiality agreements, A prominent Golfer was caught allegedly cheatin...

A prominent Golfer was caught allegedly cheating on his wife. The evidence consists of emails and text messages from alleged paramours. The golfer has major endorsement contracts w

Derivative action - statutory provisions, Derivative action: In Nurcom...

Derivative action: In Nurcombe v Nurcombe Lawton L J stated that a derivative action is a procedural device for enabling the court to do justice to a company controlled by mis

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