Commonwealth Repealed Acts

This legislation has been repealed.

CORPORATIONS LAW- SECT 254M

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.