Maximum amount of members' contribution
| This information is required by virtue of section 2(4) of the Companies Act 1985 which provides as follows:
| '(4) The memorandum of a company limited by guarantee must also state that each member undertakes to contribute to the assets of the company if it should be wound up while he is a member, or within one year after he ceases to be a member, for payment of the debts and liabilities of the company contracted before he ceases to be a member, and of the costs, charges and expenses of winding up, and for adjustment of the rights of the contributories among themselves, such amount as may be required, not exceeding a specified amount.'
| There is no limit as to the amount which must be stipulated as the member's maximum contribution. It may, for example, be as little as £1 or as much as £100,000,000. However given the nature of the activities of most companies limited by guarantee (e.g. not for profit concerns such as clubs, management companies for flats and associations of traders for trade protection or information exchange) it is likely to be a relatively small amount such as, say £100.
The amount which you stipulate here will appear in the company's memorandum of association which UKcorporator will produce for you if you require.
You should bear in mind that the amount which you stipulate as the maximum contribution by members in the event of a winding up cannot be increased after the company is incorporated. (In UKcorporator's view, this follows from section 2(7) of the Companies Act 1985 and the absence of any express provision in the Act enabling such an alteration.) |
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