Commonwealth Consolidated Acts

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Liability on partly-paid shares

General rule about shareholder's liability for calls

             (1)  If shares in a company are partly-paid, the shareholder is liable to pay calls on the shares in accordance with the terms on which the shares are on issue. This subsection does not apply to a no liability company.

Note:          The shareholder may also be liable as a contributory under sections 514-529 if the company is wound up.

No liability companies

             (2)  The acceptance by a person of a share in a no liability company, whether by issue or transfer, does not constitute a contract by the person to pay:

                     (a)  calls in respect of the share; or

                     (b)  any contribution to the debts and liabilities of the company.

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