THE COMPANIES ORDINANCE, 1972

Contributor's

203. In the event of a company being wound up, every present and past member and shareholder shall be liable to cpntribute to the assets of the company to an amount sufficient for the payment of its debts and 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 following qualifications—

(a) a past member or shareholder shall not be liable to contribute if he has ceased to be a member or shareholder lor one year or upwards before the commencement of the winding up ;

(b) a past member or shareholder shall not be liable to contribute unless it appears to the court that the existing members and shareholders are unable to satisfy the contributions required to be made by them in pursuance of this Ordinance ;

(c)   no contribution shall be required from any member or shareholder exceeding the amount, if any, unpaid on the shares in respect of which he is liable as a present or past member or shareholder ;

(d)   nothing in this Ordinance shall invalidate any provision contained in any contract or guarantee whereby the liability of an individual member or shareholder of the company by the term; of the contract or guarantee is restricted to less than the amount which he would be liable to contribute under this section if the company were wound up, or is increased beyond that amount, and if any such contract is entered into or if any such guarantee is given, this section shall take effect as though it had not been entered into or given ;

(e)   a sum due to any member or shareholder of a company, in his character of a member or shareholder, by way of dividends, profits, capital, redemption premiums or otherwise, shall not be deemed to be a debt of the company payable to that member or shareholder in a case of competition between himself and any other creditor or claimant, 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.

204.—(1) The term "contributory" means every person liable to contribute to the assets of a company in the event of its being wound up, and for the purposes of all proceedings for determining, and all proceedings prior to the final determination of, the persons who are to be deemed contributories, includes any person alleged to be a contributory.

(2)   The liability of a contributory shall be deemed to be a debt accruing due from him at the time when the winding up commences, but payable at the times when calls are made for enforcing the liability.

(3)  If a contributory dies either before or after he has been placed on the list of contributories, his heirs or the persons entitled to his estate shall be liable in a due course of administration to contribute to the assets of the company in discharge of his liability, and shall be contributories accordingly.

(4)   If the heirs or persons entitled to the estate of a deceased contributory make default in paying any money ordered to be paid by them, proceedings may be taken for administering the estate of the deceased contributory, and for compelling payment thereout of the money due.

(5)  If a contributory becomes bankrupt, either before or after he has been placed on the list of contributories—

(a)   his trustee in bankruptcy shall represent him for all the purposes of the winding up, and shall be a contributory accordingly, and may be called on to admit to proof against the estate of the bankrupt, or otherwise to allow to be paid out of his assets in due course of law, any money due from the bankrupt in respect of his liability to contribute to the assets of the company ; and

(b)    there may be proved against the estate of the bankrupt the estimated value of his liability to future calls as well as calls already made.

(6)  If a contributory is interdicted either before or after he has been placed on the list of contributories, the last foregoing subsection shall apply as though he had become bankrupt, with the substitution, for references to a trustee in bankruptcy, of references to his tutor, or if he has no tutor, to a person appointed by the court to represent him.