audit query regarding share premium.

IA & Risk expert (Freelancer) (198 Points)

06 October 2010  

As per section 78 of the act, shares can b issued at the premium, such premium can be recd in cah or oherwise.

In case of forfeiture of such hares the amount credited to Sec Premium a/c cannot be forfeited.

My Query is:

1)

Can company call for premium amount before calling of complete face value?

eg. shres of FV 10 issued at 12, calls are made as under:

allotment: 2

1st call: 3

2nd call: 5 (2+3: where 2 being premium amount & 3 towards FV)

 

2)

what is minimum amount that is required by the company to call on allotment?

 

3)

what r the reasons for company to forfeit fully paid shares?