Section 427 - Obligations of directors and managers whose liability is unlimited. - Companies Act, 1956

Obligations of directors [1] [* * *] and managers whose liability is unlimited. 427. In the winding up of a limited company, any director [2] [* * *] or manager, whether past or present, whose liability is, under the provisions of this Act, unlimited, shall in addition to his liability, if any, to contribute as an ordinary member, be liable to make a further contribution as if he were, at the commencement of the winding up, a member of an unlimited company: Provided that ___ (a) a past director [3] [* * *] or manager shall not be liable to make such further contribution, if he has ceased to hold office for a year or upwards before the commencement of the winding up; (b) a past director [4] [* * *] or manager shall not be liable to make such further contribution in respect of any debt or liability of the company contracted after he ceased to hold office; (c) subject to the articles of the company, a director, [5] [* * *] or manager shall not be liable to make such further contribution, unless the [6] [Tribunal] deems it necessary to require the contribution in order to satisfy the debts and liabilities of the company, and the costs, charges and expenses of the winding up. ---------------------------------------- Notes:- [1] Omitted by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000, as provisions relating to managing agents, secretaries and treasures had become redundant after abolition of system by Act 17 of 1969. [2] Omitted by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000, as provisions relating to managing agents, secretaries and treasures had become redundant after abolition of system by Act 17 of 1969. [3] Omitted by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000, as provisions relating to managing agents, secretaries and treasures had become redundant after abolition of system by Act 17 of 1969. [4] Omitted by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000, as provisions relating to managing agents, secretaries and treasures had become redundant after abolition of system by Act 17 of 1969. [5] Omitted by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000, as provisions relating to managing agents, secretaries and treasures had become redundant after abolition of system by Act 17 of 1969. [6] Substituted for "Court" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified.