Saved Bookmarks
| 1. |
Study the following cases and express your opinion.Red Tubes Ltd. has made a demand on its shareholders to pay the balance unpaid amount of ₹ 20/- per share (having a face value of ₹ 100) held by them. The company has sent letters asking the shareholders to pay the money to its Bankers within the specified time.(a). Are the shareholders liable to pay ₹ 20/- for the shares held by them?(b). Name the letter sent by the company to its shareholders asking them to pay ₹ 20/-(c). What happens if the shareholders fail to pay the money within a specific time? |
|
Answer» (a) Yes. The shareholders are liable to pay ₹ 20 for the shares held by them. When a company demands the shareholder to pay a part or full amount of the balance amount unpaid on shares it is called ‘calls on shares’. (b) The company will send a ‘Call Letter’ to its shareholders for asking them to pay ₹ 20. (c) If a shareholder fails to pay call money within the specified time, the company can forfeit the shares. |
|