Liability of person who has ceased to be member

Corporate2024155 sections12 chapters

Chapter III MEMBERS AND THEIR RIGHTS AND LIABILITIES

Statutory text

(1) Where a person has ceased to be a member of a society under section 29,––
- (a) his liability in respect of any debt due by him to the society and in respect of any outstanding demand owing to the society by him shall continue as if he had not ceased to be a member; and
- (b) his liability for the debts of the society as they stood immediately before the date of such cessation shall, save as otherwise provided in sub-section (2), continue for a period of three years from such date, as if he had not ceased to be a member: Provided that the liability shall be attached to the estate of such person, if such cessation was due to his death or such person dies after his ceasing to be a member.
(2) Where a society is ordered to be wound up under any provisions of this Regulation, then the liability of a person under clause (b) of sub-section (1), who has ceased to be a member thereof within three years immediately preceding the date of order of winding up, shall continue, until the entire liquidation proceedings are completed.

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