The liability of a contributory creates a debt (in England and Wales in the nature of [F209an ordinary contract debtF209] ) accruing due from him at the time when his liability commenced, but payable at the times when calls are made for enforcing the liability.
Definitions used in section 80 1
- contributory
(1) In this Act . . . the expression “contributory” means every person liable to contribute to the assets of a company in the event of its being wound up, and for the purposes of all proceedings for determining, and all proceedings prior to the final determination of, the persons who are to be deemed contributories, includes any person alleged to be a contributory.
Defined in s.79(1) · see it in the full Act
Cases considering section 80 3
The Joint Administrators of LB Holdings Intermediate 2 Ltd v Lehman Brothers Holdings Inc
Section 80 provides that a contributory’s liability creates a debt accruing when the liability commences but payable when calls are made. The court applies this to support proof of a future call as a contingent liability (see paras [207]-[212]).
Lehman Brothers International (Europe) & Ors, Re
Confirms that a contributory’s liability creates a debt accruing when membership begins but payable when calls are made. (see paras [142]-[143])
The Joint Administrators of LB Holdings Intermediate 2 Limited v The Joint Administrators of Lehman Brothers International (Europe) and others
The provision describes a contributory's liability as accruing when membership begins but payable when calls are made. It did not make the company itself a present creditor capable of proving before liquidation. (see paras [153]-[158])
What each judgment says about section 80 is in the case-law panel in the full Act.
Amendments and notes
2 notes from legislation.gov.uk
Amendments
- F209Words in s. 80 substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), arts. 2(1), 8, Sch. 1 para. 75(9) (with art. 10, Sch. 1 para. 84)
Modifications
- C264Ss. 80-82 applied (with modifications) (E.W.S.) (8.7.2021) by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), regs. 2, 37 (with reg. 5) (as amended (4.1.2024) by S.I. 2023/1399, regs. 1(2), 4, 11)