https://www.taxtmi.com/caselaws?id=96631 A subscriber to a company's memorandum becomes bound on incorporation to take the shares entered against his name, and liability as a contributory in winding up is not avoided by the absence of formal allotment. Allegations of fraud or misrepresentation by promoters may affect separate rights between the parties, but they do not defeat the statutory obligation to contribute. A purported surrender of uncalled shares is ineffective where it would amount to an unlawful reduction of capital unless supported by a recognised statutory basis such as forfeiture. The signatories who had not been validly released from that obligation remained liable as contributories. en-us Wed, 13 Dec 1933 00:00:00 +0530 Fri, 16 Mar 2012 19:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96631 A subscriber to a company's memorandum becomes bound on incorporation to take the shares entered against his name, and liability as a contributory in winding up is not avoided by the absence of formal allotment. Allegations of fraud or misrepresentation by promoters may affect separate rights between the parties, but they do not defeat the statutory obligation to contribute. A purported surrender of uncalled shares is ineffective where it would amount to an unlawful reduction of capital unless supported by a recognised statutory basis such as forfeiture. The signatories who had not been validly released from that obligation remained liable as contributories. Case-Laws Companies Law Wed, 13 Dec 1933 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96631