Rights and liabilities of share holders

RIGHTS AND LIABILITY OF MEMBERS


The rights of the members of a company may be grouped under the following rights of three heads.


1.statutory rights:

These are the rights which are conferred on the members by the companies act. These rights cannot be taken away or modified by any provision in the memorandum or articles.


2.documentory rights:

These are the rights are given to the members by the memorandum and the articles of association.


3.legal rights:

These are the rights which are given to members by the genral law.
Liability of members.

The liability of the members of a company depands on the nature of the company.
Company with unlimited liability.

Each member is liable in full for all the debts contracted by the company during the period he was a member.

Company limited by shares:

Each members 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.

Company limited by gurantee:

Each member is liable to contribute the amount guaranteed by him to be paid in the event of the winding up of the company.