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Wednesday, 8 June 2016

B3 Definitions

Authorized capital
The total or maximum amount of capital which the company authorized to raise

Called up capital
The total allotment of capital which the share holders are called upon to pay

Calls in Advance
The excess money paid by the share holders in respect to the share s alloted to him over and above what is payable before he is called upon to pay.

Calls in Arrears
The amount though called up the directors, the shareholders have failed to pay and thus in arrears.

Call money
When the directors inform thr shareholders to pay a apart of the share amount through a letter,  it is said that a call has been made, the amount payable on such a call is called as call money.

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