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Articles of Association - Liability
I wish to become a member of a Limited Company (Private company limited by guarantee without share capital) and see in the Articles of Association that :
'The liability of each member is limited to £1, being the amount that each member undertakes to contribute to the assets of the company in the event of its being wound up while he is a member or within one year after he ceases to be a member, for;- (a) Payment of the company's debts and liabilities contracted before he ceases to be a member, (b) Payment of the costs,charges and expenses of winding up, and (c) Adjustments of the rights of the contributories among themselves.'
The Articles further state that 'Every person who is entitled to be, and who wishes to become, a member of the company shall deliver to the company an application for membership executed by him in the following form (or in a form as near to the following form as circumstances allow or jion any other form which is usual or which the director may approve
To the Board of [name of company) I, [name] of [address of flat] wish to become a member of [name of company] subject to the provisions of the Articles of Association of the company and to any rules made under those Articles. I agree to pay the company an amount of up to £1 if the company is wound up while I am a member or for up to 12 months after I ceased to become a member. Signed Dated.'
Is it a legal requirement to complete that form/declaration to be a member and if I don't sign it would I then be liable, in the event of Bankruptcy, for (a) Payment of the company's debts and liabilities contracted before he ceases to be a member, (b) Payment of the costs,charges and expenses of winding up, and (c) Adjustments of the rights of the contributories among themselves.
Any help would be appreciated.
'The liability of each member is limited to £1, being the amount that each member undertakes to contribute to the assets of the company in the event of its being wound up while he is a member or within one year after he ceases to be a member, for;- (a) Payment of the company's debts and liabilities contracted before he ceases to be a member, (b) Payment of the costs,charges and expenses of winding up, and (c) Adjustments of the rights of the contributories among themselves.'
The Articles further state that 'Every person who is entitled to be, and who wishes to become, a member of the company shall deliver to the company an application for membership executed by him in the following form (or in a form as near to the following form as circumstances allow or jion any other form which is usual or which the director may approve
To the Board of [name of company) I, [name] of [address of flat] wish to become a member of [name of company] subject to the provisions of the Articles of Association of the company and to any rules made under those Articles. I agree to pay the company an amount of up to £1 if the company is wound up while I am a member or for up to 12 months after I ceased to become a member. Signed Dated.'Is it a legal requirement to complete that form/declaration to be a member and if I don't sign it would I then be liable, in the event of Bankruptcy, for (a) Payment of the company's debts and liabilities contracted before he ceases to be a member, (b) Payment of the costs,charges and expenses of winding up, and (c) Adjustments of the rights of the contributories among themselves.
Any help would be appreciated.
