A member is also subject to certain liabilities and obligations
either by the Act or by the Articles. Some of the important ones are stated
hereunder:
(1) If
shares are not allotted for a consideration other than cash, then a member must
pay the whole nominal value of his shares in cash.
(2) It a
member is holding partly paid-up shares and the company goes into liquidation,
then he becomes liable as contributory to pay, if called upon lo do so, towards
the assets of the company(s.429).
(3) A
person may be included in the ‘B’ list of contributories, as a past member and
required to pay to the extent of the amount remaining unpaid on the shares
which he held within one year prior to the commencement of winding up, if (i)
on the commencement of winding up, debts exist which were incurred while he was
a member; and (ii) the contributories of the 'A' list (i.e., present members)
are not able to satisfy the contribution required from them in respect of their
shares.
(4) As
mentioned earlier, the liability of members becomes unlimited and several, even
in the case of a limited liability company (s.45).
(5) A
member is bound to the company by all the covenants of the Articles e.g., a company
may have a paramount lien on a member's shares for any amount due from him to
the company.
(6) In the case of company limited by guarantee, the member may be asked to
contribute to the extent of his guarantee at the time
of winding up.(6) In the case of company limited by guarantee, the member may be asked to
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