Companies Act Section 49 — Calls on shares of same class to be made on uniform basis

CHAPTER IV SHARE CAPITAL AND DEBENTURES

Commercial / Corporate

Summary

If a company asks shareholders to pay more money on their shares (a call for further share capital), it must ask for the same amount from every share in that class. The demand must be uniform across all shares of that class.

The explanation clarifies what counts as the same class of shares. Shares that have the same nominal value but have had different amounts already paid up on them are not treated as being in the same class. So, a call can be made differently on shares that have different paid-up amounts, even if their nominal value is the same.

Official Text

Where any calls for further share capital are made on the shares of a class, such calls shall be made on a uniform basis on all shares falling under that class.

Explanation.—For the purposes of this section, shares of the same nominal value on which different amounts have been paid-up shall not be deemed to fall under the same class.