Company law

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This query is : Resolved

CA. Praveen Narayan (Querist)

14 February 2011 Dear..

Where number of members falls below rquired minimum(2 or 7) and the company continues to function for more than 6 months, all members who are aware of the fact, will be severally liable for the debts of th co incurred during that period.

My doubts:-
1) What about debts incurred after 6 months?

2) What s th consequence if it functions after 6 months?

3) what if, they increased th number to required min within 6 months?

4) Hw to integrate abv provisions with th follwing-
One of the reasons 4 winding up by Court is-

the number of members, in a public company is reduced to less than seven, and in case of private company less than two.

Thank you in Advance...

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

14 February 2011 1) Up to 6 months company is liable. After 6 months members are severally liable and can be severally sued. Ref. section 45.
2) It is ground for winding up. Ref. section 433(d).
3) No consequences since regularized with in the permitted time.
4) I didn't understand what you mean.

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CA. Praveen Narayan

CA. Praveen Narayan (Querist)

15 February 2011
"....all members who are aware of the fact, will be severally liable for the debts incurred during that period."

Dear Sir, whether members liability is only for debts incurred after 6 months or for debts incurred during first 6 months..? "that period" means...?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

15 February 2011 My understanding says, after six months.

CA. Praveen Narayan

CA. Praveen Narayan (Querist)

15 February 2011 k.. sir.. thank you very much..

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