+3 votes
in Class 12 by kratos

What do you understand by Calls in Arrear on Shares?

1 Answer

+2 votes
by kratos
 
Best answer

If shareholders fail to make the payment of allotment or Calls on due date , it is known as Calls-inArrears. The company charges interest on calls in arrears at a specified rate mentioned in the Articles of Association. If the articles of the company are silent about the interest rate, Table-F shall follow and interest shall be charged @ 10 % Per Annum .

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