COMPANIES ACT - 1963 (ACT 179)

    Section - 79 - Protection of Creditors

    (1) If any creditor, entitled in respect of any debt or claim to oppose the confirmation, is by reason of his ignorance of the proceedings for confirmation, or of their nature and effect with respect to his claim, not entered on the list of creditors and, after the confirmation, the company fails to pay the amount of his debt or claim, then,

    (a) every person who was a member of the company at the date of the registration of the order and minute, shall be liable to contribute for the payment of that debt or claim, an amount not exceeding the amount which he would have been liable to contribute on the winding up of the company had that commenced immediately before the date of such registration; and

    (b) if the company is wound up, the Court, on the application of any such creditor and proof of his ignorance as aforesaid, may settle a list of persons so liable to contribute and make and enforce calls and orders on such persons as if they were members liable to contribute in accordance with section 37 of this Code.

    (2) Nothing in subsection (1) of this section shall affect the rights of the members among themselves and, except as provided in subsection (1) of this section, a member or past member after the date of the registration of the order and minute shall not be liable in respect of any share to any call or contribution exceeding in amount the unpaid liability on such share as set out in the minute.

    (3) If any officer of the company,

    (a) wilfully conceals the name of any creditor entitled to oppose the confirmation; or

    (b) wilfully misrepresents the nature or amount of the debt or claim of any creditor; or

    (c) aids, abets, or is privy to any such concealment or misrepresentation as aforesaid, he shall be personally liable to pay to the creditor the amount of his debt or claim to the extent to which it is not paid by the company and shall be guilty of an offence and liable on conviction to imprisonment for a term not exceeding two years, or to a fine not exceeding two hundred pounds, or to both such imprisonment and fine.