The right and liabilities of the shareholders when a company receives payment in advance of calls are as follows:-

  1. The liability of the shareholders to the company n respect of the calls for which the amount paid is finished.
  2. The amount received in advance of calls is no refundable
  3. The shareholder voting right ends in respect of the money’s so paid by him till the same would, but for such repayment becomes presently payable [sec. 92(2)]
  4. The shareholder is in a position to claim interest on the amount of the call to the extent payable according to AOA. If there are no profits, it must be paid out of capital of the company.
  5. The power to receive the payment in advance of calls must be exercised in the general interest and for the benefit of the company.
  6. In the event of winding up the shareholder position is after the creditor but they must be paid his amount with interest, if any before the other shareholders are paid off.


The following two tabs change content below.
We, at, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]

Leave a reply is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp

Log in with your credentials


Forgot your details?


Create Account