342. Liability of former shareholders

In this section, “former shareholder”, with respect to a company, means a person who was a shareholder at any time within the period of twelve months immediately preceding the date of commencement of its liquidation.

Subject to subsections (3) and (4), where a shareholder fails to pay any amount owing in respect of a share, that amount shall be payable by, and may be recovered by a liquidator from, any former shareholder.

A former shareholder shall not be liable under subsection (2) where, at all times that the former shareholder was a shareholder during the period referred to in subsection (1), the company was able to pay its debts as they had become due in the normal course of business.

Where the liability attached to a share has increased after the time at which it was held by a former shareholder, the liability of the former shareholder under subsection (2)