Member liability for reduced membership: members may be severally liable for company debts if business continues with insufficient members. Where a company's membership falls below the statutory minimum and it carries on business for more than six months in that state, any member who is present after those six months and is cognisant that the company is carrying on business with insufficient members shall be severally liable for debts contracted during that time and may be severally sued therefor.
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 reduced membership: members may be severally liable for company debts if business continues with insufficient members.
Where a company's membership falls below the statutory minimum and it carries on business for more than six months in that state, any member who is present after those six months and is cognisant that the company is carrying on business with insufficient members shall be severally liable for debts contracted during that time and may be severally sued therefor.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.