Compantes. [Ch. 31. No. 1.

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(g) a sum due to any member of a company, in his
character of a member, 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 compe-
tition between himself and any other creditor not a
member of the company, but any such sum may be
taken into account for the purpose of the final adjust-
ment of the rights of the contributories among
themselves.

(2) In the winding up of a limited company, any
director or manager, whether past or present, whose
liability is, under the provisions of this Ordinance, 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;

(c) subject to the articles of the company, a director
or manager shall not be liable to make such further
contribution unless the Court deems it necessary to
require that contribution in order to satisfy the debts
and liabilities of the company, and the costs, charges,
and expenses of the winding up.

(3) 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 under-
taken to be contributed by him to the assets of the company
in the event ofits being wound up, to contribute to the extent
of any sums unpaid on any shares held by him.

156. The term “ contributory ”’ means every person liable
to contribute to the assets of a company in the event of its
being wound up, and for the purposes of all proceedings for

Definition of
contributory