Part I Formation and Registration of Companies; Juridical Status and Membership

Chapter I Company Formation

Registration and its consequences

16 Effect of alteration on company’s members.

1

A member of a company is not bound by an alteration made in the memorandum or articles after the date on which he became a member, if and so far as the alteration—

a

requires him to take or subscribe for more shares than the number held by him at the date on which the alteration is made; or

b

in any way increases his liability as at that date to contribute to the company’s share capital or otherwise to pay money to the company.

2

Subsection (1) operates notwithstanding anything in the memorandum or articles; but it does not apply in a case where the member agrees in writing, either before or after the alteration is made, to be bound by the alteration.