Who is a contributory of a company

The Extent and Limitation of liability:. It means that if the shares are fully paid, the liability of the contributory is nil. Liabilities of Different Functionaries:. A past member shall not be liable to contribute if he has ceased to be a member for one year or upwards before the commencement of the Winding-Up. Thus the liability is nil. These are the persons whose names do not appear in the register of members of the company, as on the date of the commencement of the winding-up of the company; but were members of the company within one year prior to the commencement of the winding-up and they ceased to be members of the company not by death but by transfer or forfeiture of their shares.

No past member shall be liable to contribute unless it appears to the Court that the present members are unable to satisfy the contributions required to be made by them in pursuance of this Act. A past member shall not be liable to contribute in respect of any debt or liability of the Company contracted after he ceased to be a member.

In the case of a Company limited by shares, no contribution shall be required from any past member exceeding the amount, if any, unpaid on the shares in respect of which he is liable as such member. In Jtt Chandler and Co. In Pars ram Brij Kishore v. Jagraon Trading Syndicate Ltd. AIR Lah case, the liquidator of a company called upon the defendant to pay the uncalled amount on his shares.

His shares had been forfeited before the winding up and, therefore he was a past member. In Mirza Ahamad Namazi, re, AIR Mad case, the Court held that a person whose shares have been forfeited is also liable as a past member, provided the liquidation commences within one year of the date of forfeiture and the past member could not be liable to contribute till liability of present members was exhausted.

Present Members:. Present members are those persons whose names appear in the register of members of the company, as on the date of commencement of winding up. The present member who has not paid the full amount on shares is liable to pay the remaining amount but the members who have paid-up full amount on shares have no liability.

Lakshmi N. Reddi v. Official Liquidator, Sree Films Ltd. The Court held that a contributory cannot contend that, although his name appears on the register, he is not liable because the allotment of hares to him was, for some reason, void.

The Court opined that the liability of a member of a company to be included in the list of contributories is not ex contractu, that is, it does not arise by virtue of his contract to take shares.

His liability is ex lege which means that it arises by the reason of the fact that his name appears on the register of members of the company. Manabendra Shah v. Official Liquidator, 47 Co. In Sonardih Coal Co. This list will include all shareholders, although those who hold fully paid-up shares will not be liable to pay any more. From: contributory in A Dictionary of Finance and Banking ». Subjects: Social sciences — Economics. View all related items in Oxford Reference ».

Search for: 'contributory' in Oxford Reference ». All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single entry from a reference work in OR for personal use for details see Privacy Policy and Legal Notice.

Oxford Reference. Publications Pages Publications Pages. Section of the Act provides the conditions and restrictions of granting loans to the directors. Every company must follow the conditions laid down in this Section before granting loans or giving guarantee or security in connection with any loan. Compulsory winding up takes place when a creditor of an insolvent company asks the court for a wind up. The company will then be dissolved and its name will be struck off from the list of companies in the registrar's office.

Any surplus money left will be distributed amongst the shareholders of the company. Contributory means every person liable to contribute to the assets of a company on winding up , including those claiming to be contributories prior to determination of such claims.

The most common form of petition is by a creditor on the grounds that the company is unable to pay its debts. Contributory value refers to the amount by which a single component of an asset influences its total value. Contributory value is commonly used in the real estate industry to illustrate how just one property feature impacts the value of the entire property.

Contributory value can be either negative or positive. A contradiction is a situation or ideas in opposition to one another. Declaring publicly that you are an environmentalist but never remembering to take out the recycling is an example of a contradiction.

A "contradiction in terms" is a common phrase used to describe a statement that contains opposing ideas. A Statement of Affairs is a document detailing a company's assets and liabilities. Generally prepared by a liquidator or appointed professional during certain insolvency proceedings , the document is later registered at Companies House, where it becomes available for public view.