161 Liability of subsequent holders of shares

Where the statutory provisions regarding payment for shares have not been complied with, Companies Act 2006 Section 588 provides that a subsequent holder is jointly and severally liable to pay the amount which the original allottee would have been liable to pay1. Thus, liability spreads down the chain of subsequent holders of the shares, all becoming jointly and severally liable to pay the money at least in theory. In practice, the effect of Section 588 is severely undermined due to the fact that a subsequent holder of shares can claim exemption if2:

  1. 161.1

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