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liability limited by gaurantee
Corporate & Other Laws
pls explain me the highlight point at the time of wind up if assets are insufficient to meet up the expenses only then they would bring money ? whts within 1yr
Answers (1)
The amount of guarantee can only be called from member at the time of winding up if assets are insufficient in these two situations: 1. If at the time of winding up, person is a member 2. The member has sold the companies shares and within one year of such sales, the company is wound up. Which means that lets say a members sells the shares f the company and he is no longer the member of the company and after 2 years (more than 1 year) of him leaving, the company is wound up, then he will not be asked to pay the guarantee amount. So upto one year of member leaving the company, if the company is wound up, he can be asked to contribute guarantee amount in case assets are insufficient.
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