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J and K are the only shareholders in JK Ltd, each holding 500 fully paid...

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J and K are the only shareholders in JK Ltd, each holding 500 fully paid ordinary £1 shares. J is the company's only director and K the company secretary. The company has been placed in creditors’ voluntary liquidation on the grounds that it is unable to pay its debts.

 

Which of the following is correct?

A.

J is liable for the company's debts as he is the sole director of the company which is obliged by law to have at least two directors.

B.

JK Ltd is not liable for its debts as it is a limited company.

C.

J and K are not obliged to contribute anything further towards the debts of the company.

D.

As they each hold 50% of the shares, J and K are each obliged to pay half of the company's debts.

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