Contributory - Companies Law Ready Reckoner - Companies Law

As per section 2(26) of the Companies Act, 2013, unless the context otherwise requires,- Contributory means- a person liable to contribute towards the assets of the company in the event of its being wound up. Explanation. -For the purposes of this clause, it is hereby clarified that a person holding fully paid-up shares in a company shall be considered as a contributory but shall have no liabilities of a contributory under the Act whilst retaining rights of such a contributory;