Companies Act Section 3A — Members severally liable in certain cases.-If at any time the number of members of a company is reduced, in the case of a public company, below seven, in the case of a private company, below two, and the company carries on business for more than six months while the number of members is so reduced, every person who is a member of the company during the time that it so carries on business after those six months and is cognisant of the fact that it is carrying on business with less than seven members or two members, as the case may be, shall be severally liable for the payment of the whole debts of the company
CHAPTER II INCORPORATION OF COMPANY AND MATTERS INCIDENTAL THERETO
Commercial / Corporate
Summary
If a company's membership drops below the legal minimum—fewer than seven members for a public company, or fewer than two for a private company—and the company continues to do business for more than six months in that reduced state, then any member who knows about this situation becomes personally responsible for the company's debts. This liability applies to debts the company takes on during the period after those six months have passed, and that member can be sued individually for the full amount of those debts.
Official Text
contracted during that time, and may be severally sued therefor.]