Liability of members on winding up
601BN Liability of members on winding up
A person who stopped being a member of the body before it was registered as a company under this Part is to be treated as a past member of the company in applying Division 2 of Part 5.6 to a winding up of the company. However, the person’s liability to contribute to the company’s property is further limited by this section to an amount sufficient for the following:
payment of debts and liabilities contracted by the company before the day on which the company was registered under this Part;
payment of the costs, charges and expenses of winding up the company, so far as those costs, charges and expenses relate to those debts and liabilities;
the adjustment of the rights between the contributories, so far as the adjustment relates to those debts and liabilities.
This Act’s bill:Explanatory memorandumSecond reading speech
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