65. Differences in calls and payments, etc.

Question 1

65. Differences in calls and payments, etc.

Answer 1

General overview
[65.01] Section 65 empowers the company to make various arrangements in relation to calls and payments of share capital in its regulations: s 65(1). For the protection of creditors, a company may, by special resolution, set aside any portion of its share capital which has not been called up into a reserve account, to be called up only in the event of the company’s winding up.

Question 2

Calls and payments

Answer 2

[65.02] If so authorised by the articles or regulations, a company may (a) arrange for varying amounts and times of payment of calls as between shareholders; (b) accept payment for part or whole of the amount unpaid on the shares although no calls have been made; and (c) pay dividends according to the amount paid up on the shares although a larger amount is paid on some shares

Question 3

Reserve liability

Answer 3

[65.03] Subsection (2) allows a limited company to set aside a portion of its uncalled share capital in a reserve account that will be called upon only in a winding up of the company.