144. Limited company may have directors with unlimited liability

In a limited company the liability of the directors or managers, or of the managing director, may, if so provided by the memorandum, be unlimited.

In a limited company in which the liability of a director or manager is unlimited, the directors or managers of the company, if any, and the members who proposes a person for election or appointment to the office of director or manager shall add to that proposal a statement that the liability of the person holding that ofice will be unlimited, and the promoters, directors, managers and secretary, if any, of the company or one of them shall, before the person accepts the ofice or acts therein, give him notice in writing that his liability will be unlimited.

If any director, manager or proposer makes default in adding such a statement, or if any promoter, director, manager or secretary makes default in giving such a notice, he is guilty of an offence and liable on conviction to a fine of $1,000, and is also liable for any damage which the person so elected or appointed may sustain from the default, but the liability of the person elected or appointed shall not be affected by the default.