(1) The insolvency administrator must, without delay after the statement of assets under section 153 of the Insolvency Code is deposited at the registry, calculate how much the members are to advance to cover the shortfall apparent from the statement of assets. Where going-concern and liquidation values are stated side by side in the statement of assets, the shortfall resulting on the basis of the liquidation values is decisive.
(2) In the advance-contribution calculation, all members are to be named individually and the contributions distributed among them. The amount of the contributions is to be assessed such that no shortfall in the total amount to be covered arises through a foreseeable inability of individual members to make contributions.
(3) The calculation is to be submitted to the insolvency court with the application that it be declared enforceable. A certified copy of the list of members, and, insofar as the register of cooperatives is not kept at the insolvency court, a certified copy of the statutes, is to be attached to the application.
Home› Commercial & Company Law› GenG (English)
Section 106
Advance-contribution calculation
←→ also move between sections