Clause 36

If at any time the number of members of a company (other than a company the whole of the issued shares of which are held by a holding company) is reduced below two and it carries on business for more than six months while the number is so reduced, a person who is a member of the company during the time that it so carries on business after those six months and is cognizant of the fact that it is carrying on business with fewer than two members shall be liable for the payment of all the debts of the company contracted during the time that it so carries on business after those six months and may be sued therefor, and if the company so carries on business after those six months, the company and such member shall be guilty of an offence under this Act and shall each be liable on conviction to a fine not exceeding five hundred dollars and also to a default penalty. [U.K. s. 31.][Aust. s. 36.]