Who are Contributories in the winding up of a company?
Contributories are person who are liable to contribute to the assets of a company in the event of its being wound up. The concept of contributory arises only at the time of winding up of a company. A contributory refers to a shareholder or member of a company.
What is meant by B list of Contributories?
2. Shareholders who have transferred that partly paid shares within one year earlier to date of winding up will be placed in “B” List. Such contributories will be referred to as “B” List of contributories.
Who are included in List A of Contributories?
(1) Contributories (List A): Those shareholders who are members of the company at the time of its winding-up are included in list ‘A’. They are primarily liable for making payment to the company at the time of its winding-up up to the extent of the amount which remains unpaid on their shares up to that time.
How are the liabilities of List B Contributories determined?
A shareholder who had transferred his shares within 12 months from the date of winding-up is liable to contribute as per List B. In the present problem, PQST and U are the transferors. If the transferees pay the amount due as present member contributories, there must not be any liability on the transferors.
Who are contributors?
A contributor is someone who takes part in something or makes a contribution. Writers and people who donate money in particular are called contributors. Writers whose work is included in a book, magazine, or newspaper are called contributors.
Who is a contributory in a company is?
A person liable to contribute to the assets of a company on its winding up including every past and present member of the company (sections 74 and 79 of the Insolvency Act 1986).
What is the nature and extent of Contributories liability?
Sec 429 – Nature of liability of contributory. (1) The liability of a contributory shall create a debt accruing due from him at the time when his liability commenced, but payable at the times specified in calls made on him for enforcing the liability.
Who is called as a liquidator?
A liquidator refers to an officer who is specially appointed to wind up the affairs of a company when the company is closing—typically when the company is going bankrupt. Assets of a company are sold by the liquidator and the resulting funds are used to pay off the company’s debts.
Can a director be a contributory?
In the Winding-Up of a Limited Company, any Director or manager, unlimited, shall, in addition to this 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.
What is contributor and non contributor?
A contributor takes up and does work in the interest of the whole group. A non-contributor is always self-concerned and does not think about the impact of that work on others.
Who is contributory under Companies Act 2013?
“contributory” means a person liable to contribute towards the assets of the company in the event of its being wound up.
Who is contributory in liquidation?
What is contributory under Companies Act 2013?
Is liquidation and winding up the same?
Note: The process of selling assets and paying off company liabilities is undertaken by the liquidator under the liquidation process. So, liquidation is a part of the wind-up process of a company.
What is the role of liquidator?
A role of a liquidator is to investigate the financial management of the insolvent company. The liquidator will secure and recover all the assets of the company, pay creditors, conduct all relevant investigations into the financial management of the company.