https://www.taxtmi.com/caselaws?id=98696 In winding-up proceedings, liability of contributories is confined to amounts unpaid on shares, and a shareholder holding fully paid shares cannot be placed on the contributories list unless the register is first rectified or the allotment contract is properly impeached. Mere inadequacy of consideration for shares issued in exchange for property does not, by itself, justify inquiry into whether the shares were fully paid. Only where fraud is shown, or the consideration is plainly illusory or clearly not equivalent to the nominal value, can the character of the shares be questioned. On the facts stated, no rectification or fraud was alleged, so inquiry into consideration was impermissible. en-us Fri, 20 Feb 1970 00:00:00 +0530 Sat, 09 Aug 2014 09:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98696 In winding-up proceedings, liability of contributories is confined to amounts unpaid on shares, and a shareholder holding fully paid shares cannot be placed on the contributories list unless the register is first rectified or the allotment contract is properly impeached. Mere inadequacy of consideration for shares issued in exchange for property does not, by itself, justify inquiry into whether the shares were fully paid. Only where fraud is shown, or the consideration is plainly illusory or clearly not equivalent to the nominal value, can the character of the shares be questioned. On the facts stated, no rectification or fraud was alleged, so inquiry into consideration was impermissible. Case-Laws Companies Law Fri, 20 Feb 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98696