Define: Calls In Arrears

Calls in arrears refer to the unpaid portion of a company’s issued shares that shareholders have not yet fully paid for.

Yes, calls in arrears are legal. They represent a legitimate financial obligation of shareholders to pay for their shares.

Calls in arrears are calculated by multiplying the unpaid portion of each share by the number of shares held by the shareholder.

Yes, a company has the right to take legal action against shareholders who fail to pay their calls in arrears. This may include pursuing debt collection or initiating legal proceedings.

Yes, a company can refuse to issue dividends to shareholders who have outstanding calls in arrears. Dividends are typically distributed only to fully paid-up shareholders.

Calls in arrears can be waived or forgiven by the company’s board of directors. However, this decision is at the discretion of the board and may require shareholder approval.

Calls in arrears cannot be transferred or sold to another shareholder. They remain the responsibility of the original shareholder until paid.

In some cases, companies may allow shareholders to pay calls in arrears in installments. However, this is subject to the company’s policies and may require approval from the board of directors.

Calls in arrears can be written off as bad debt by the company if it determines that the chances of recovering the unpaid amount are slim. However, this decision must comply with applicable accounting standards and regulations.