Saved Bookmarks
| 1. |
What is meant by calls-in-advance? State the provisions of it under Companies Act. |
|
Answer» If there is provision in the Articles of Association, a company can receive in advance a part or . whole of the uncalled amount. Since the uncalled amount is received by company in advance from shareholders, the same is credited to the calls-in-advance’ account. Calls-in-advance is not share capital of the company, hence dividends can not be given on it. It is compulsory to pay interest on calls-in-advance amount, uptil it is settled against the call is due for payment. On pre-decided rate specified in articles of the company. If articles of the company is silent on this matter, interest is payable 12% p.a. (maximum). The interest on calls-in-advance is payable compulsorily even if there is no profit. |
|