CORP · S01Revision: Introduction of the SubjectAsked in 3 of 7 papers (Dec ’23, Jun ’24, Jan ’25)
A company's memorandum limits each member's guarantee to a stated sum if the company is wound up while that person is a member or within one year after membership ends. Under the Companies Act, 2013, what does that guarantee ordinarily describe?
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AAutomatic personal ownership by members of the company's assets up to the guaranteed sum.
BA ceiling on every debt the company itself may validly owe to all creditors combined.
CThe member's stipulated winding-up contribution, including the statutory purposes and timing stated in the memorandum.
DAn obligation that necessarily vanishes the instant the person ceases to be a member, whatever the debt date.
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