A person liable to contribute towards the debts of a company on winding-up. The term includes members of companies holding fully-paid shares, though strictly speaking these cannot be called on to pay anything further. Lists of contributories distinguish between those liable personally and those liable through representing some other person. There are A and B lists. The A list shows present members; the B list, past shows present members; the B list, past he ceased to be a member a year or more before the commencement of the windingup; (2) for debts incurred after he has ceased to be a member. Otherwise he is liable for debts incurred while he was still a member, when the other members fail to pay, up to the nominal value of the shares he held.
|Reference: The Penguin Business Dictionary, 3rd edt.|