Member liability for society debts continues for a limited period and may extend through winding up until liquidation is complete. A past member remains liable for society debts as they existed on the date of cessation of membership, and the estate of a deceased member remains liable for debts as they existed on the date of death; such continuing liability ordinarily endures for two years. If the society is ordered to be wound up, a past member who ceased membership or a deceased member who died within the two years before the winding up order remains liable until liquidation is complete, but only for debts existing on the date of cessation or death.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Member liability for society debts continues for a limited period and may extend through winding up until liquidation is complete.
A past member remains liable for society debts as they existed on the date of cessation of membership, and the estate of a deceased member remains liable for debts as they existed on the date of death; such continuing liability ordinarily endures for two years. If the society is ordered to be wound up, a past member who ceased membership or a deceased member who died within the two years before the winding up order remains liable until liquidation is complete, but only for debts existing on the date of cessation or death.
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