The term “called-up share capital” refers to the portion of a company’s share capital that has been requested by the company’s directors or shareholders to be paid by the shareholders. This amount represents the total value of shares that have been issued by the company and for which the shareholders are obligated to pay. The called-up share capital is typically paid in installments or as agreed upon by the shareholders. It is an important indicator of the financial strength and stability of a company.
Called up share capital refers to the portion of a company’s authorized share capital that has been issued and for which shareholders are required to pay.
Authorized share capital represents the maximum amount of share capital a company is allowed to issue, while called up share capital is the portion of authorized share capital that has been issued and is payable by shareholders.
No, a company cannot issue shares without calling up the share capital. Shareholders are required to pay for the shares they subscribe to, and the company cannot issue shares until the share capital is called up.
Yes, a company can increase its called up share capital by issuing additional shares and calling up the corresponding share capital from shareholders.
Yes, a company can decrease its called up share capital through a process called reduction of share capital. This can be done by either cancelling shares or reducing the nominal value of existing shares.
If a shareholder fails to pay the called up share capital, the company may take legal action to recover the unpaid amount. The shareholder may also face penalties or consequences as per the company’s articles of association or applicable laws.
Yes, a company can return called up share capital to shareholders through a process called share buyback or capital reduction. This can be done if the company has sufficient distributable reserves and follows the legal procedures for returning capital.
Yes, a company can issue shares at a premium over the called up share capital. The premium represents the additional amount paid by shareholders for the shares, which is over and above the nominal value of the shares.
Yes, a company can change the amount of called up share capital after incorporation by following the legal procedures for altering the company’s articles of association. This may require shareholder approval and compliance with applicable laws and regulations.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 1st May 2024.
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