Payment of Calls in Atlvance. Under 5cc. 92 of the Companies Act, a COlllp tny may, if authorised by its ; accept from any member (shareholder) the whole OI part of the amount remaining unpaid on the shares, Iteld by him, although no part of that amount has been called up. Thus, if a shareholder makes payment of the unpaid amount on his shares in advance of the call made by company, the company is permitted to accept it provided it 'is authorised bv-the Articles to do so. However, the shareholder ma payment of calls in advance shallnatbe entitled to anvvoting right its respect of such payment until the same becomes payable by virtue of a call tnade by the company : ' :
If authonsed by the Articles, the company mav also pay mterest on the amount paid in advance of calls. The rate of interest must not exceed six per cent annum. any higher rate of interest has to be sanctioned by a general meethlg of the company in case of profits, the interest may be paid out of capital since the shareholder becomes a creditor of the company in respect of the calls paid m advance: But-the paid in advance is not
186 'S: SECRETARIAL PRACTICE
distinctive numbers of the shares. U) The face value of and a r . each share, (g) The date of issue of the certificate.
Statutory Provisions. Section 113 ofthe Companies Act, 1956 As amended in 1988), provides that
: Law BDard may extend the period of delivery. of certificates bv a further period: not exceeding nine months, if the Board is satisfied t hat it is not possible for the company to deliver the certificates : within the said period.
(it) if default is made in complying with this provision, the company and every erp officer thereof shall be liableto pay fine.
(iii) if, after defaults a notice is served in the company to make good the default and the company fails to do so within ten days, the Cotnpanv Law Board may be order direct the connpanv to make good the default witlun the bone specified in the order.
EOSS OF SHARE CERTiFlCATE
The original ceriit;cate issued to a shareholder may become defaced c r mutilated or torn, or it may get lost or destroved. When the certificate is defaced, mutilated or torn, the shareholder can surrender the same to the company for the issue of a duplicate certificate. But when the orig na' certificate is lost or dcstroycd, he is required to ghe a stahltor declaration stating the fact of loss or destnct ion. He has also to forward to the compar
a letter of indemnity in far our of the company to protect it against am- claim s. losses or expenses caused by the loss ofthe original certificate and iss fresh one. He may even be required to give bank guarantee, in addiaon le¢ter of indetnnity if the shares are of considerable value, the Snap if to give a public notice of tile loss before issuingthe duplicate certify a .
SS:E CF DUPLICATE SHARE CERTIFICATES
L Odor Section 84 of the Companies Act, a share certificate nay be or a duplicate certificate issued, if the original certificate is proved e been lost of destroyed, or if it is ututilated, defaced or tONVII,