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CS Executive · Corporate Accounting and Financial Management · Accounting for Share Capital

Under the Companies Act, 2013, where calls for further share capital are made on shares of a class, what is the requirement regarding the calls?

Calls for further share capital on shares of a class must be made on a uniform basis on all shares falling under that class. Shares of the same nominal value with different amounts paid-up are not deemed to be of the same class for this purpose.

  1. AThey must be made on a uniform basis on all shares falling under that classCorrect
  2. BThey may be made only on shares held by promoters
  3. CThey must be made at different rates for shares with different holders
  4. DThey must be approved by the Tribunal before being made

Explanation

Section 49 requires calls on shares of the same class to be made on a uniform basis on all shares of that class. The Act does not require Tribunal approval for calls, and does not limit calls to promoters. Differing rates among holders of the same class would defeat uniformity.

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