ABSTRACT
Contributories are7 those who are liable to contribute to the assets of a company in the event of its being wound up except for those liable on the basis of fraudulent or wrongful trading.
Section 74 of the Insolvency Act 1986 provides that when a company is wound up, every present and past member is liable to contribute to its assets to any amount sufficient for payment of its debts and liabilities and the expenses of the winding up, and for the adjustment of the rights of the contributories themselves. This is subject to the major limitation that, in the case of a company limited by shares, no contribution is required from any member exceeding the amount (if any) unpaid on the shares in respect of which he or she is liable as a present or past member.
