THE LIABILITY OF SHAREHOLDERS.
[TO THE EDITOR OF THE "SPECTATOR."
SIR,—Mr. John Goodier is entirely mistaken in stating, in his letter in last week's Spectator, that the holder of Bank or other shares who, in a crisis like the present, sells his shares, is in the same position as regards liability as before. The 28th Section of the Act of Parliament says :—" No past member shall be liable to contribute to the assets of the Company, unless it appears to the Court that the existing members are unable to satisfy the con- tributions required to be made by them in pursuance of the Act." Past members, therefore, cannot be called upon to contribute towards discharging the liabilities of any company until it is found that the present shareholders are unable to discharge them.
This is undoubtedly an important point of law, but whether a right understanding of it is likely to "calm" the "unreasoning fear "of holders anxious to sell their shares, is more than question- able.—I am, Sir, &c.,
Previous page
