Utilisation of money received on Call

[SUMIT JAISWAL]

Dear All,

Hello. This is my first post in this wonderful forum. I am excited to be here.

My query is that whether the amount received as call from a shareholder can be immediately utilised by the Company? The case is that shares were allotted on preferential basis by an unlisted public company on partly paid up basis. The share application money was received and resolution was passed in the Board meeting allotting the shares in March 2014. In the same meeting, Board passed a resolution for calling the remaining amount of money due on the shares. Now, the Company has received the call money from a shareholder within the time limit as given by the Board for receipt of call money. Whether the company can immediately utilise the same money for any of its business activities OR the Company cannot use the amount unless it has been considered by the Board at their meeting.

 

Thanks & Regards

Sumit Jaiswal