What are Calls on shares?

1.	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.

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