78K. Liability of members on reduced shares

Question 1

78K. Liability of members on reduced shares

Answer 1

General overview
[78K.01] Where the capital reduction is effected, the liability of members on the shares is reduced accordingly. For example, if the issue price of the shares is $1, and the amount paid up on the shares is $0.50, leaving $0.50 unpaid on the shares. A capital reduction of $0.20 per share would mean that the member’s liability for calls or contribution would be $0.30 per share.