Section 118 CAMA 2020
Section 118 Companies and Allied Matters Act is about Liability for company debts where membership is below legal minimum. It is under Chapter 6 (Membership of the Company) of PART B (Incorporation of Companies and Incidental Matters) of the Act.
Liability for company debts where membership is below legal minimum
If a public company or a company limited by guarantee carries on business or its objects, without having at least two members and does so for more than six months, every director or officer of the company, during the time that it so carries on business with only one or no member, is liable jointly and severally with the company for the debts of the company contracted during that period.
