IVA Glossary
C
Contributory
Contributories within a company are those individuals who share direct involvement in financial, administrative and managerial matters of that respective company. In the event of that company being wound up, all contributories do have an obligation to contribute to the pay off of the outstanding debts. For example, a shareholder within a company is a contributory person.
If it is an unregistered company that is being wound up, contributories become directly liable for contributing even to the expenses incurred with the process of the company being wound up. Any other expenses that might incur regarding the settling of the rights of the members of the company among themselves will be supported by the contributories.
Each of the contributories becomes directly liable, and must respect the provisions stated in the Insolvency Act of 1986. Within it is stated, that both present and past members become directly liable to take part actively in settling any debt issues of the respective company. Pertaining to the situation of the winding up of a company, the contributor has almost the same rights and responsibilities as that of a creditor.
If it is an unregistered company that is being wound up, contributories become directly liable for contributing even to the expenses incurred with the process of the company being wound up. Any other expenses that might incur regarding the settling of the rights of the members of the company among themselves will be supported by the contributories.
Each of the contributories becomes directly liable, and must respect the provisions stated in the Insolvency Act of 1986. Within it is stated, that both present and past members become directly liable to take part actively in settling any debt issues of the respective company. Pertaining to the situation of the winding up of a company, the contributor has almost the same rights and responsibilities as that of a creditor.
