Section 18Part 2 — Constitution and Incorporation of Companies and Associations
Liability of members in respect of reduced shares
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In the case of a reduction of share capital, a member of the company, past or present, shall not be liable in respect of any share to any call or contribution exceeding in amount the difference, if any, between the amount of the share as fixed by the minute and the amount paid or the reduced amount, if any, which is to be deemed to have been paid on the shares, as the case may be: Provided that , if any, creditor entitled in respect of any debt or claim to object to the reduction of share capital is, by reason of that person’s ignorance of the proceedings for reduction or of their nature and effect with respect to that person’s claim, not entered on the list of creditors, and after the reduction the company is unable, within the meaning of this Act with respect to winding up by the Court, to pay the amount of that person’s debt or claim, then —
every person who was a member of the company at th e date of the registration of the order for reduction and minute shall be liable to contribute for the payment of that debt or claim an amount not exceeding the amount which that person would have been liable to contribute if the company had commenced to b e wound up on the day before the said date; and
if the company is wound up, the Court, on the application of any such creditor and proof of that person’s ignorance as aforesaid, may if it thinks fit, settle accordingly a list of persons so liable to co ntribute, and make and enforce calls and orders on the contributories in a winding up.
Nothing in this section shall affect the rights of the contributories among themselves.