Section 254M — Corporations Act 2001: Liability on partly-paid shares

General rule about shareholder’s liability for calls (1) If shares in a company are partly-paid, the shareholder is liable to pay calls on the shares in accordance with the terms on which the shares are on issue. This subsection does not apply to a no liability company. Note: The shareholder may also be liable as a contributory under sections 514-529 if the company is wound up. No liability companies (2) The acceptance by a person of a share in a no liability company, whether by issue or transfer, does not constitute a contract by the person to pay: (a) calls in respect of the share; or (b) any contribution to the debts and liabilities of the company.