COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 70 Liability of members in respect of reduced shares.

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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 70

Liability of members in respect of reduced shares.

70.(1) Subject to sub-section (2), in the case of a reduction of share
capital, a member of the company, past or present, shall not be liable in
respect of any share to any call or contribution exceeding in amount the
difference, if any, between the amount of the share as fixed by the minute and
the amount paid, or the reduced amount, if any, which is to be deemed to have
been paid, on the share, as the case may be.

(2) If any creditor, entitled in respect of any debt or claim to object to the
reduction of share capital, is, by reason of his ignorance of the proceedings
for reduction, or of their nature and effect with respect to his claim, not
entered on the list of creditors, and, after the reduction, the company is
unable, within the meaning of the provisions of this Act with respect to
winding up by the court, to pay the amount of his debt or claim, then

(a)every person who was a member of the company at the date of the
registration of the order for reduction and minute, shall be liable to
contribute for the payment of that debt or claim an amount not exceeding the
amount which he would have been liable to contribute if the company had
commenced to be wound up on the day before the said date; and

(b)if the company is wound up, the court, on the application of any such
creditor and proof of his ignorance as aforesaid, may, if it thinks fit,
settle accordingly a list of persons so liable to contribute, and make and
enforce calls and orders on the contributories settled on the list, as if they
were ordinary contributories in a winding up.

(3) Nothing in this section shall affect the rights of the contributories
among themselves.

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Northern Irish Legislation

COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 70