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Calls

shares, time and company

CALLS. Shares may be either fully paid or only partly paid. If the latter. the holders are liable, when called upon by the company. to pay up the amounts or " calls " as they are made. Calls should be made in accordance with the company's articles of association or the agreement when the shares were first issued. A limited company may. by special resolution declare that any portion of its uncalled capital shall not be called up except in the event of the company being wound up. (See RESERVE LIABILITY. Some of the clauses of Table A with respect to calls (see Section 11 of the Companies (Consolidation) Act, 190S. under ARTICLES OF ASSOCIATION) are as follows : 12, The directors may from time to time make calls upon the members in re spect of any moneys unpaid on their shares, provided that no call shall exceed one-fourth of the nominal amount of the share, or be payable at less than one month from the last call ; and each member shall (subject to receiving at least fourteen days' notice specifying the time or times of payment) pay to the com pany at the time or times so specified the amount called on his shares.

13. The joint holders of a share shall be jointly and severally liable to pay all calls in respect thereof.

" 16. The directors may make arrange ments on the issue of shares for a difference between the holders in the amount of calls to be paid and in the times of payment.

' 17. The directors may, if they think fit, receive from any member willing to advance the same all or any part of the moneys uncalled and unpaid upon any shares held by him ; and upon all or any of the moneys so advanced may (until the same would, but for such advance, become presently payable) pay interest at such rate (not exceeding, without the sanction of the company in general meeting, six per cent.) as may be agreed upon between the member paying the sum in advance and the directors." There is usually a clause in the articles that, in the event of non-payment of a call by a member, his shares will be liable to forfeiture.

A company can sue a member for payment of a call at any time within twenty years. (See CAPITAL, COMPANIES, SHARE CAPITAL.)