CONTRIBUTORIES

CONTRIBUTORIES:

                                      Every present and past member who is liable to contribute to the assets of the company in the winding up is known as contributories.

AMOUNT OF CONTRIBUTION:

                                                                To determine the amount of Contribution Company is divided in three categories:

1.       Company limited by share.

2.       Company limited by guarantee.

3.       Company limited by guarantee having share capital.

COMPANY LIMITED BY SHARE:

                                                                Contribution shall be made to the extent of original share that remain unpaid.

COMPANY LIMITED BY GUARANTEE:

                                                                       Contribution shall be to the extent of amount guaranteed by shareholder.

COMPANY LIMITED BY GURANATED HAVING SHARE CAPITAL:

                                                                                                                                Contribution shall be made to the extent of guarantee amount and unpaid amount of share capital.

LIABILITY OF PAST MEMBER:

                                                                Liability to contribute to the assets of the company can be avoided under following circumstances:-

1.       Such member has ceases to be a member of the company more than one year.

2.       Debts or liabilities were incurred after he ceased to be a member.

3.       The present members are able to satisfy the contribution required to be made.

LIABILITY OF DIRECTOR OR MANAGER WHETHER PAST OR PRESENT:

                                                                                                                                         Liability of director or manager whether past or present is unlimited irrespective of their shareholding. However under the following circumstances liability is limited as ordinary as ordinary shareholder.

1.       He has ceased to hold the post for a year or more before the commencement of the winding up.

2.       The debts were incurred by the company after he ceased to held the office.

3.       If article restricts the contribution and court shall not give any expressed order in respect of thereof.

TYPES OF CONTRIBUTORIES :

1.       LIST A CONTRIBUTORIES: which is consists of present member.

2.       LIST B CONTRIBUTORIES: which is consists of past members.

CIRCUMSTANCES WHEN CONTRIBUTORIES IS DEAD, INSOLVENT OR WINDING UP IN CASE OF BODY CORPORATE:

1.       In case of death => His legal representatives.

2.       In case of insolvent => the assignee of such insolvent member.

3.       In case of winding up=> liquidator.

                                                                                                                                                                                                                                                                                         Thank you.