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

Assets in the possession of creditors, ASSETS IN THE POSSESSION OF CREDITOR...

ASSETS IN THE POSSESSION OF CREDITORS:  If the creditor has seized assets in the course of executing a judgement for debt against the company and at the commencement of the wi

Advertising gambit, Bagra Used Cars Ltd. has as the most prominent show on ...

Bagra Used Cars Ltd. has as the most prominent show on its lot an immaculate, highly polished model which rotates slowly on a raised circular platform under powerful floodlights. T

Powers of managing director, Powers of Managing Director:             ...

Powers of Managing Director:             Article 109 offers that "the directors may entrust to and confer upon a managing director any of the powers exercisable by them upon s

What is diplomatic immunity, What is Diplomatic immunity Diplomatic imm...

What is Diplomatic immunity Diplomatic immunity relates to the protection of the representatives of another state to ensure that they perform their international political func

Liability in tort, Liability in Tort A partner commits a tortious act ...

Liability in Tort A partner commits a tortious act so then the remaining partners are jointly and hence severally liable with him, thus provided they authorised such the act e

Special interest groups and policy decision, Special interest groups and po...

Special interest groups and policy decision Special Interest Groups, either of voters or the prospective contesters, play an important role in policy process, especially under

What is codifying treaty, What is Codifying treaty Codifying treaty, me...

What is Codifying treaty Codifying treaty, meaning whereby, certain existing customary laws are codified in order to develop international law and make it binding between the s

Legal profession - magistrates, Legal Profession - Magistrates However...

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

Advantages of stare decisis - certainty and predictability, Advantages of S...

Advantages of Stare Decisis - Certainty and Predictability However the doctrine of stare Decisis includes an element of certainty and uniformity in the administration and mana

Power to dispense with the word limited, Power to dispense with the word "L...

Power to dispense with the word "Limited":                             Although s.5 provides that the last word of the name of a limited company must be "limited" this would n

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