When a company is wound up, all members who ceased to be the shareholders within a year before the winding up are placed in the

The correct answer is - List B of contributories

Key Points

• List B of contributories
  • When a company is wound up, all members who ceased to be shareholders within a year before the winding up are placed in List B of contributories.
  • This list includes members who have transferred their shares within the year prior to winding up.
  • They are liable to contribute to the assets of the company if the current shareholders (List A contributories) are unable to meet the company's liabilities.

Additional Information

• List A of contributories
  • Includes current shareholders at the time of winding up.
  • They are primarily liable to contribute to the company's assets to settle its debts and liabilities.
• Role of contributories
  • Contributories are individuals or entities liable to contribute to the company's assets in the event of winding up.
  • This classification helps in determining the order of liability for settling the company's debts.
• Types of winding up
  • Voluntary winding up - initiated by the company itself.
  • Compulsory winding up - initiated by a court order.
  • The role of contributories is significant in both types as they ensure the company's liabilities are met.