Minimum membership thresholds impose personal liability where members aware of reduced membership continue business past the statutory grace period. Section 3A makes members personally liable where a public company falls below seven members or a private company below two and continues business for more ... Summary
Minimum membership thresholds impose personal liability where members aware of reduced membership continue business past the statutory grace period.
Section 3A makes members personally liable where a public company falls below seven members or a private company below two and continues business for more than six months; members who are members during that period and cognisant of the reduced membership shall be severally liable for the whole debts contracted during that time and may be severally sued.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.