Western Australian Consolidated Acts

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COMPANIES (CO-OPERATIVE) ACT 1943 - SECT 40

40 .         Effect of carrying on business with less than minimum number of members

                If at any time the number of members of a company is reduced in the case of a proprietary company below 2, or in the case of any other company below 5, and it carries on business for more than 6 months, while the number is so reduced every person who is a member of the company during the time that it so carries on business after those 6 months and is cognisant of the fact that it is carrying on business with fewer than 2 members or 5 members, as the case may be, shall be severally liable for the payment of the whole debts of the company contracted during that time, and may be sued for the same without joinder in the action of any other member.



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