what is the actual meaning and who is covered in the definition of contributory "all those persons who are liable to contribute to the assets of the company?"
Shareholders are contributory who are liable to the assets of the company in event of winding up ,For company Ltd by shares ,Any amount unpaid by them on the shares ,For guarantee co,As they undertake to contribute to asset of company ,For unlimited liability co,To all debts & liabilities of company ,even after his ceasing to be a member of company if company wind up within 1 yr he is liable to discharge for loans and debts taken by company when he was member ,(But liability arises only when company's assets are short to discharge to make good the debt )
Thank you so much for the answer. So is it that basically the term contributory can be considered equivalent to a shareholder? or it encompasses even some other persons?
CAclubindia
