Amended and updated notes on section 286 of Companies Act 2013. Detail discussion on provisions and rules related to obligations of directors and managers.
Chapter XX (Section 270–365) of the Companies Act, 2013 (CA 2013) deals with the provisions related to winding up. Section 286 of CA 2013 provides for obligations of directors and managers.
Recently, we have discussed in detail section 285 (Settlement of list of contributories and application of assets) of CA 2013. Today, we learn the provisions of section 286 of the Companies Act 2013.
The provisions of section 286 are effective from 15th December, 2016. You may refer Notification No. S.O. 3677(E) issued dated 7-12-2016. In this article, you will learn detail of the provisions of section 286 the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XX |
| Chapter Name | Winding Up |
| Section No. | 286 |
| Section Name | Obligations of directors and managers |
| Monthly Updated Edition | Company Law PDF |
Section 286 of Companies Act 2013: Obligations of directors and managers
Section 286 shall come into force on 15th December, 2016 vide Notification No. S.O. 3677(E) dated 07.12.2016.
In the case of a limited company, any person who is or has been a director or manager, whose liability is unlimited under the provisions of this Act, shall, in addition to his liability, if any, to contribute as an ordinary member, be liable to make a further contribution as if he were at the commencement of winding up, a member of an unlimited company:
Provided that —
- (a) a person who has been a director or manager shall not be liable to make such further contribution, if he has ceased to hold office for a year or upwards before the commencement of the winding up;
- (b) a person who has been a director or manager shall not be liable to make such further contribution in respect of any debt or liability of the company contracted after he ceased to hold office;
- (c) subject to the articles of the company, a director or manager shall not be liable to make such further contribution unless the Tribunal deems it necessary to require the contribution in order to satisfy the debts and liabilities of the company, and the costs, charges and expenses of the winding up.