Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 186

186. (1) Where the number of members of a company (counting joint holders of
shares as one person) is reduced:

   (a)  in the case of a proprietary company-below 2; or

   (b)  in the case of any other company-below 5; and the company carries on
        business for more than 6 months while the number is so reduced, a
        person who, at any time when the company so carries on business after
        those 6 months, is a member of the company and is aware that the
        company is carrying on business with fewer than 2 or 5 members, as the
        case may be:

   (c)  is severally liable for the payment of any debt of the company
        contracted at a time when:

        (i)    the company so carries on business after those 6 months; and

        (ii)   the person is a member;
and may be severally sued for payment of that debt; and

   (d)  contravenes this subsection.

(2) Subsection (1) does not apply in relation to a company the whole of the
issued shares of which are held by a holding company that is a company.