The term’ contributory’ means every person liable to contribute to the assets of a company in the event of its being wound-up, and includes the holder of any shares which are fully paid-up [Section 428].
Further, Section 428.makes use of the expression ‘deemed contributories’ which shall include any person alleged to be a contributory.
Contributory vis-a-vis Member
The terms ‘contributory’ and ‘member’ are not interchangeable under Section 428. While every member would become a contributory, the converse would not be true. For instance, a legal representative of a deceased member shall be regarded as contributory but he cannot be regarded as a member until and unless his name is entered in the Register of members [Rajdhani Grains and Jaggery Exchange Ltd., Re [1983]54 Compo Cas. 166].
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