Companies Act Section 296 — Power of Tribunal to make calls

CHAPTER XX WINDING UP

Commercial / Corporate

Summary

The Tribunal can, at any time after a winding up order has been passed, and whether or not it has yet determined if the company's assets are enough, demand payment from the people listed as contributories. This demand is limited to the extent of what each contributory is liable for, and the money collected is used to pay the company's debts and liabilities, the costs and expenses of the winding up, and to adjust the rights of the contributories among themselves.

Under clause (b), the Tribunal can also issue an order requiring that the calls it has made be paid.

Official Text

The Tribunal may, at any time after the passing of a winding up order, and either before or after it has ascertained the sufficiency of the assets of the company,—

(a) make calls on all or any of the contributories for the time being on the list of the contributories, to the extent of their liability, for payment of any money which the Tribunal considers necessary to satisfy the debts and liabilities of the company, and the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves; and

(b) make an order for payment of any calls so made.