Right to participate in the assets of the company on its winding

, after distribution to creditors. etc. (Sections 475 and 511)These rights are very valuable for keeping the management on the right track, if exercised in

an intelligent manner.

Liabilitv of Members. The liability of the members of a company

depends on tle ‘nature of the company. .:

.1. COml)any with Unlimited Liaility. Each member is liable in full

for all the debts contracted by the company during the period of his membership. The members are liable to meet all losses of the company. They may

have met such losses from their personal estate.

2. Company Limited by Guarantee. Each member is liable to contribute the amount guaranteed by him to be paid in the event of the winding up of the

company.

3. Company Limited by Shares. Every member is liable to pay the full nominal value of the shares held by him. If he has already paid a part of the amount

on the shares, his liability is limited to the unpaid amount on the shares in respect of which he is a member. Once a member has paid the full amount on

shares held by him, he cannot be called upon to contribute anything more.

If at any time the number of members is reduced below 7 (2 in the case of a private company), and the company carries on business for more than 6

months while the number is so reduced, every member who knows that the number is so reduced bt.;comes severally liable for the payment of the whole

of the debts of the company contracted after those 6 months [Section 45).