31. Prohibition of carrying on business with fewer than seven or, in case of private company, two members

If at any time the number of members of a company is reduced, in the case of a private company, below two or, in the case of any other company, below seven, and it carries on business for more than 6 months while the number is so reduced, every person who is a member of the

Companies

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company during the time that it so carries on business after those 6 months and is cognisant of the fact that it is carrying on business with fewer than two members or seven 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.

CONTRACTS ETC.