Common use of Guarantee Amount Clause in Contracts

Guarantee Amount. 3.1 (General liability): If a company limited by guarantee is wound up, a present or past member of the company is liable to contribute up to the agreed amount to the company’s property: (a) to pay the company’s debts and liabilities and the costs, charges and expenses of the winding up; and (b) to adjust the rights of contributories among themselves 3.2 (Past members): However, a past member will not need to contribute: (a) in respect of a debt or liability of the company contracted after the person ceased to be a member; (b) if he, she or it was not a member during the year ending on the day of the commencement of the winding up; and (c) unless it appears to an Australian court that the present members are unable to satisfy the contributions that they are liable to make under the Corporations Act