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Effects of Non-Payment of a Call

Non-payment of call money has the following effects 1. If any operator does not pay the call amount for 6 months of the stipulated period, then he will have to leave his post.

2. In case of non-payment of the call, the shareholder is bound to return his shares to the company.

3. Interest at the rate of 5% per annum can be charged to the subscriber for the period from the date fixed for the call to the date of payment of the call.

4. The company may forfeit such shares in the event of non-payment of the call by the shareholder even after giving proper notice by the company.

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