Section - 427 - Companies Act, 1956

Section - 427 - Obligations of directors and managers whose liability is unlimited

Obligations of directors and managers whose liability is unlimited.

427. In the winding up of a limited company, any director

[***] or manager, whether past or present, whose liability is, under the provisions of this Act, unlimited, shall, in addition to his liability, if any, to contribute as an ordinary member, be liable to make a further contribution as if he were, at the commencement of the winding up, a member of an unlimited company:

Provided that—

(a) a past director

[***] or manager shall not be liable to make such further contribution, if he has ceased to hold office for a year or upwards before the commencement of the winding up;

(b) a past director

[***] or manager shall not be liable to make such further contribution in respect of any debt or liability of the company contracted after he ceased to hold office;

& .... To read the full section download the app from Google Play store