Section 50 · Chapter IV, Share Capital and Debentures
Company to accept unpaid share capital, although not called up
📚 Law Minded summary
A company may, if its articles allow, accept money a shareholder offers on shares before it has actually called for it.
The shareholder gains no extra voting rights by paying early — the vote still follows what has been called up, not what has been paid.
Section 50. Company to accept unpaid share capital, although not called up
(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.