How is one year to be reckoned in the given provision?

Originally posted by : Mayur Varshney
	426. Liability as contributories of present and past members. (1) In the event of a company being wound up, every present and past member shall be liable to contribute to the assets of the company to an amount sufficient for payment of its debts and liabilities and the costs, charges and expenses of the winding up, and for the adjustment of the rights of the contributories among themselves, subject to the provisions of section 427 and subject also to the following qualifications, namely:- (a) a past member shall not be liable to contribute if he has ceased to be a member for one year or upwards before the commencement of the winding up;..............

.......assume that the petition for winding up is presented to the tribunal on march 7,2010 i.e.winding up has commenced on march 7, 2010.

?

Can nobody interpret something so elementary?
 

Before any Confusion read the full section carefully specialy sub section (c) and (d)

Liability as contributories of present and past members.

426. (1) In the event of a company being wound up, every present and past member shall be liable to contribute to the assets of the company to an amount sufficient for payment of its debts and liabilities and the costs, charges and expenses of the winding up, and for the adjustment of the rights of the contributories among themselves, subject to the provisions of section 427 and subject also to the following qualifications, namely:—

          (a)  a past member shall not be liable to contribute if he has ceased to be a member for one year or upwards before the commencement of the winding up;

          (b)  a past member shall not be liable to contribute in respect of any debt or liability of the company contracted after he ceased to be a member;

          (c)  no past member shall be liable to contribute unless it appears to the ⁴⁹[Tribunal] that the present members are unable to satisfy the contributions required to be made by them in pursuance of this Act;

          (d)  in the case of a company limited by shares, no contribution shall be required from any past or present member exceeding the amount, if any, unpaid on the shares in respect of which he is liable as such member;

          (e)  in the case of a company limited by guarantee, no contribution shall, subject to the provisions of sub-section (2), be required from any past or present member exceeding the amount undertaken to be contri-buted by him to the assets of the company in the event of its being wound up;

          (f)  nothing in this Act shall invalidate any provision contained in any policy of insurance or other contract whereby the liability of indivi-dual members on the policy or contract is restricted, or whereby the funds of the company are alone made liable in respect of the policy or contract;

          (g)  a sum due to any past or present member of the company in his character as such, by way of dividends, profits or otherwise, shall not be deemed to be a debt of the company payable to that member, in a case of competition between himself and ⁵⁰[any creditor claiming otherwise than in the character of a past or present member of the company]; but any such sum shall be taken into account for the purpose of the final adjustment of the rights of the contributories among themselves.

(2) In the winding up of a company limited by guarantee which has a share capital, every member of the company shall be liable, in addition to the amount undertaken to be contributed by him to the assets of the company in the event of its being wound up, to contribute to the extent of any sums unpaid on any shares held by him as if the company were a company limited by shares.

I simply want to know what 'one year' implies in the given provision.How this one year is to be reckoned in the given provision if the date of commencement of winding up is 7th march 2010?

As per my intrpretation of Sec 426(1)(a) & informaton given by you the period of cesation from membership must exceed by 1 year or more upto 06/03/2010 in your case.

Originally posted by : vivek
	As per my intrpretation of Sec 426(1)(a) & informaton given by you the period of cesation from membership must exceed by 1 year or more upto 06/03/2010 in your case.

So,if a person ceased to be a member on say 5th march 2009 he will not be liable to contribute to the assets of the company?

As per provision it seems

Originally posted by : vivek
	As per my intrpretation of Sec 426(1)(a) & informaton given by you the period of cesation from membership must exceed by 1 year or more upto 06/03/2010 in your case.

so, another person who ceased to be a member on 10 march 2009,is liable to contribute to the assets of the company.

Originally posted by : Mayur Varshney
	Originally posted by : vivek As per my intrpretation of Sec 426(1)(a) & informaton given by you the period of cesation from membership must exceed by 1 year or more upto 06/03/2010 in your case. so, another person who ceased to be a member on 10 march 2009,is liable to contribute to the assets of the company.

Am I correct?

It seems from provision but wait for the expert's comment

Originally posted by : vivek
	It seems from provision but wait for the expert's comment

Now who is the expert and where is he??

Anyone?

Bump.