PAPERSPAST

Re Proposed Company

. ' . , X3OC Dear Sir,—With reference.to the inquiry herein, the position regarding the liability of the'shareholders in connection with a company formed under the Companies Act is, that the liability of each shareholder, 19 limited, to the amount of the share taken up by him;, or, to it in another way, in the event of a union taking up, we shall say, 50 £1 shares, the union's whole liability is £50; Irre- . : spective of. whatever happens to the company . (whether it. goes into liquidation or, not), the union ' is only responsible for this amount.' Again, if p. union took up, say 100 shares, and the shares, were of the value of .£l, and only 10s. had been paid on each share, then the union's liability is merely for . the. balance of •10s. per share, r When a company

is formed under the Companies Act,- and ie limited by shares, as is proposed, the liability is "limited" to the amount or number of the shares taken.,up. Section 66 of the Companies Act, 1908, sub-sectioa (b.), sets forth .the position:— "In the case of a company 1 limited by shere* no contribution shall be required from "any " •■ member exceeding the amount (if any) UNPAID on" the shares in respect of .which he is'liable as r a present or paa*t. member, ..Wβ think thie fully sets fprth'.the position, , . . '-, •i. ....: ... Yours truly, 1 O'REGAN AND DICKSON.

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