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Procedure for Making a Call

The following procedure is generally followed for making solicitation

1. Whenever the company needs money after allotment of shares, a Board of Directors is convened to make solicitations. In this meeting a motion for solicitation is passed.

2. After the resolution of solicitation is passed by the directors, the secretary of the company prepares a call list in which the names and addresses of the shareholders, period of solicitation etc. are described.

3. Call Letter: Letters of call are made by the secretary of the company, in which all those main things are mentioned which the director has passed in relation to the solicitation.

4. Notice of call letter is sent to the members. Some companies also get the information of solicitations published through newspapers so that the shareholders can get knowledge about it.

5. The amount payable by the members on demand is generally deposited in the bank of the company. The bank gives them a receipt for such payment. The bank sends the details of receipts of solicitations to the company.

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