Members severally liable where company operates below minimum membership and continues business; liable for debts contracted thereafter. A provision imposes personal, several liability where a company continues business with membership below the statutory minimum: if a public company has fewer than seven members or a private company fewer than two, and the company carries on business for more than six months while membership is reduced, each member who is a member after those six months and aware of the reduced membership is severally liable for the whole debts contracted during that period and may be severally sued.
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.
Members severally liable where company operates below minimum membership and continues business; liable for debts contracted thereafter.
A provision imposes personal, several liability where a company continues business with membership below the statutory minimum: if a public company has fewer than seven members or a private company fewer than two, and the company carries on business for more than six months while membership is reduced, each member who is a member after those six months and aware of the reduced membership is severally liable for the whole debts contracted during that period and may be severally sued.
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