(iii) The more common procedure is to limit liability by reference to shares (s.33(2)). The effect of this is to limit liability to the amount remaining unpaid on shares held (Insolvency Act 1986 s.74(2)(d)). If the shareholder has paid the full nominal value of the shares to the company, then that is the end of responsibility with regard to company debts. Consequently, if the company should subsequently go into insolvent liquidation the shareholders cannot be required to contribute to its assets in order to pay off its outstanding debts. |
