COMPANIES ACT, 1929

649

liabilities, and the costs, charges, and expenses of the winding up,
and for the adjustment of the rights of the contributories among
themselves, subject to the provisions of subsection (2) of this section
and the following qualifications: —
(a) 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:
(b) 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:
(c) a past member shall not be liable to contribute unless it
appears to the court that the existing members are unable
to satisfy the contributions required to be made by them
in pursuance of this Act:

(d)

in the case of a company limited by shares no contribution
shall be required from any member exceeding the amount,
if any, unpaid on the shares in respect of which he is liable
as a present or past member:

(e)

in the case of a company limited by guarantee, no contribution
 shall, subject to the provisions of subsection (3) of
this section, be required from any member exceeding the
amount undertaken to be contributed by him to the assets
of the company in the event of its being wound up:
nothing in this Act shall invalidate any provision contained
in any policy of insurance or other contract whereby the
liability of individual members on the policy or contract is
restricted, or whereby the funds of the company are alone
made liable in respect of the policy or contract:

f)

(2)

a sum due to any member of a company, in his character of
a member, by way of dividends, profits or otherwise, shall
not be deemed to be a debt of the company, payable to that
member in a case of competition between himself and any
other creditor not a member of the company, but any such
sum may be taken into account for the purpose of the final
adjustment of the rights of the contributories among themselves.


(2) In the winding up of a limited company, any director or
manager, whether past or present, whose liability is, under the
provisions of this Act, unlimited, shall, in addition to his liability (if
any) to contribute as an ordinary member, be liable to make a
further contribution as if he were at the commencement of the
winding up a member of an unlimited company:
Provided that—
fa) a past director or manager shall not be liable to make
such further contribution if he has ceased to hold office
for a year or upwards before the commencement of the
winding up: