Issue of Shares — Secretarial Practice STD 12 Commerce / Arts — Question
Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsSecretarial PracticeIssue of Shares4 Marks
Question
What are Calls on shares?
✓
Answer
Whenever a company issues shares, the company may ask its shareholder to pay value of shares in installment which is known as calls on shares.
Company can demand part or full amount of balance amount of unpaid shares.
Beside the application money and allotment money if a company demands the balance unpaid amount on shares it is called as calls on shares.
The unpaid amount on partly paid-up shares is a liability of the shareholders.
Calls on shares can be made by the Board of Directors in the interest of the company.
To make a call on shares, company has to send a call letter or notice to the shareholders. This notice is drafted by a secretary and issued in the name of the board of directors. The company gives them a minimum of 14 days notice to pay calls money to the Company’s Banker.
No call can be made for more than 25% of the nominal value of shares.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.