B-List Contributories
On the appointment of Liquidator, director’s position will stand automatically vacated and the shareholders will be referred to as contributories. Shareholders who have transferred that partly paid shares within one year earlier to date of winding up will be placed in “B” List. Such contributories will be referred to as “B” List of contributories. Liquidator is expected to dispose the assets off to pay off liabilities. In case the disposal of assets was not sufficient to discharge the liabilities, then the liquidator can claim from “A” List of contributories towards their unpaid capital towards the company. If “A” List of contributories are not meeting the liabilities, then liquidator can fall upon “B” List of contributories to recover money towards unpaid portion of the capital. The liquidator can fall upon only against transfer of partly paid shares effected during within one year earlier to the date of winding up and transmission of shares will not come under this purview. If there were to be more than one such contributories, then the liability will be fixed against that many contributories in the ratio in which they are expected to contribute towards the capital. In no case, such fixation of liabilities can exceed the statutory liability (towards unpaid capital).

Illustration :

Z limited has gone into liquidation on 10th may, 2012. The details of members, who have ceased to be member within one year ‘B’ contributories, are given below. The debts that could not be paid out of realization of assets and contribution from present members ( ‘A’ contributories) are also given their date-wise break up. Shares are of Rs. 10 each and ` 6 are paid up.

Shareholders	No of shares transferred	Date of transfer	Proportionate unpaid debts
X	1000	20-04-2011	3000
Y	1200	15-05-2011	5000
Z	1500	18-09-2011	9200
W	800	24-12-2011	10500
M	500	12/3/2012	11000

 

Determine the amount realisable from each person .

Solution

X has ceased to be members more than a year ago from the date of winding up; hence he is not liable as a contributory. The under given table clears the position of each one’s liability

Statement of liability of B list contributories

Creditors outstanding on date ceasing to be member	Q 1200 shares	R 1500 shares	S 800 shares	T 500 shares	Amount to be paid to creditors
	Rs.	Rs.	Rs.	Rs.	Rs.
(1) 5000	1500	1875	1000	625	5000
(2) 4,200		2250	1200	750	4200
(3) 1,300			800	500	1300
(4) 500				500	125
Total(a)	1500	4125	3000	2375	10625
Maximum liability on	4800	6000	3200	2000

shares held @ 4 per share
(C) Amount to be paid,	1500	4125	3000	2000

(a) or (b) whichever is less