Companies Act Section 50 — Company to accept unpaid share capital, although not called up

CHAPTER IV SHARE CAPITAL AND DEBENTURES

Commercial / Corporate

Summary

Sub-section (1) allows a company to accept money from a member for shares that have not yet been called up, but only if the company's articles (its internal rules) permit it. The member can pay the whole or part of the amount still unpaid on their shares, even if the company has not yet asked for any of that money.

Sub-section (2) states that a member of a company limited by shares does not get any voting rights for the amount they pay in advance under sub-section (1). Those voting rights only come into effect once the company actually calls up that amount.

Official Text

(1) A company may, if so authorised by its articles, accept from any member, the whole or a part of the amount remaining unpaid on any shares held by him, even if no part of that amount has been called up.

(2) A member of the company limited by shares shall not be entitled to any voting rights in respect of the amount paid by him under sub-section (1) until that amount has been called up.