Calls in Arrear

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Deepika Bhardwaj (Querist)
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10 February 2010 Dear Professionals

In the balance sheet of a company, calls in arrears are appearing for the past 10 years. Now the company wants to remove Calls in arrear from the balance sheet.

Pls advise the procedure to be followed by the company to forfeit calls in arrears

thanks & regards
CS. Deepika Bhardwaj

M Prabhakar Menon

M Prabhakar Menon (Expert)
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10 February 2010 Check out why it has remained in arrears for so long before forfeiting the shares. Was any dividend paid during any year on those shares? The procedure is subject to what is stated in the Articles of Assn of the company in this regard, u have not stated whether its a listed co / pvt ltd co / closely held ltd unlisted co.

Deepika Bhardwaj

Deepika Bhardwaj (Querist)
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10 February 2010 Thanks Mr. Menon

It is the case of a Listed Company.

Pls advice forfeitutre of calls in arrears is governed by which section of the Companies Act, 1956 or any other law and what would be the accounting treatment in such case.

with best regards
CS. Deepika Bhardwaj

Ankur Garg

Ankur Garg (Expert)
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10 February 2010 Download a useful file for forfeiture of shares from the link given below:

https://www.caclubindia.com/forum/pcc-chapter-wise-law-notes-part-ii-49735.asp

Regards

M Prabhakar Menon

M Prabhakar Menon (Expert)
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10 February 2010 Pl c sec108 of Cos Act '56, since the shares r listed follow SEBI guidelines also.Notice to the parties is important as any short comming in the issue of notice can invalidate a forfeiture

Deepika Bhardwaj

Deepika Bhardwaj (Querist)
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10 February 2010 Thanks Mr. Garg and Mr. Menon

with best regards
CS. Deepika Bhardwaj

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