Shares may be paid in cash or in kind or in any manner that has the effect of actual cash being received by the company.

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A debt due and owing by a banking company to a shareholder can be set off against outstanding calls so long as banking company is a going concern.

Payment of calls in advance

Section 92 of the act provides that the directors may, if authorized by the articles, allow shareholders to pay the whole or a part of the amount remaining unpaid on any shares held by them, although no part of that amount has been called up. On the amount so received the company may pay interest at such a rate as may be agreed upon between the Board and the members paying this sum in advance. The rate of interest specified under regulation 18 of Table A is 6% per annum.

According to section 92(2) a member of a limited liability company having share capital shall not be entitled to any voting rights in respect of the money so paid in advance by him until the same becomes payable.

However, section 93 provides that dividends may be paid on advance call, if so authorized by the articles.

Interest on calls due but not paid

A member is generally made liable to pay interest on the calls made but not paid. The rate of interest to be charged is as specified in the articles. Regulation, 16 of Table A provides for interest at the rate of 5% per annum.

 

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