Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 254M

General rule about shareholder's liability for calls

             (1)  If shares in a company are partly‑paid, the shareholder is liable to pay calls on the shares in accordance with the terms on which the shares are on issue. This subsection does not apply to a no liability company.

Note:          The shareholder may also be liable as a contributory under sections 514‑ 529 if the company is wound up.

No liability companies

             (2)  The acceptance by a person of a share in a no liability company, whether by issue or transfer, does not constitute a contract by the person to pay:

                     (a)  calls in respect of the share; or

                     (b)  any contribution to the debts and liabilities of the company.