State the liability of a member of a company prior to the winding up of the company. (4 marks)
View Solution
- A member of a company with shares is liable, prior to the dissolution of the company, to contribute the balance, if any, of the amount payable in respect of shares held by him or her in accordance with the terms of the agreement under which the shares were issued and acquired, or in accordance with a call validly made by the company in accordance with the company’s regulations.
- Where any contribution has become due and payable or where under the terms of any agreement with the company, a member has undertaken personal liability to make future payment in respect of shares issued to him/her.