Section 3A Members severally liable in certain cases – Companies Act 2013

Amended and updated notes on section 3A of Companies Act 2013. Detail discussion on provisions and rules related to members severally liable in certain cases.

Amended and updated notes on section 3A of Companies Act 2013. Detail discussion on provisions and rules related to members severally liable in certain cases.

Chapter II (Sections 322) of the Companies Act, 2013 (CA 2013) deals with the provisions related to incorporation of company and matters incidental thereto. Section 3A of CA 2013 provides for members severally liable in certain cases.

Recently, we have discussed in detail section 3 (Formation of company) of CA 2013. Today, we learn the provisions of section 3A of Companies Act 2013 read with the Companies (Incorporation) Rules, 2014.

Section 3A of the Companies Act, 2013 has been inserted by the Companies (Amendment) Act, 2017 w.e.f. 9th February, 2018. This amendment act was come into force from 9th February, 2018.i.e. the commencement date of section 3A is 9-2-2018.

Name of ActThe Companies Act 2013
Enacted byParliament of India
Administered byMinistry of Corporate Affairs (MCA)
Number of Chapters29
Number of Sections484 (470-43+57)
Number of Schedules7
You are reading:
Chapter No.II
Chapter NameIncorporation of Company and matters incidental thereto
Section No.3A
Section NameMembers severally liable in certain cases
Monthly Updated EditionCompany Law PDF

Section 3A of Companies Act 2013: Members severally liable in certain cases

Section 3A inserted by the Companies (Amendment) Act, 2017 w.e.f. 9th February, 2018.

If at any time the number of members of a company is reduced, in the case of a public company, below seven, in the case of a private company, below two, and the company carries on business for more than six months while the number of members is so reduced, every person who is a member of the company during the time that it so carries on business after those six months and is cognisant of the fact that it is carrying on business with less than seven members or two members, as the case may be, shall be severally liable for the payment of the whole debts of the company contracted during that time, and may be severally sued therefor.

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