Calls paid in advance

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Dr. Sharad Garg (Querist)
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24 December 2009 For calls paid in advance, will a company be under an obligation to pay both 'interest' as well as 'dividend' simultaneously?

Anjani Pratap Tiwari

Anjani Pratap Tiwari (Expert)
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25 December 2009 No, the company will be under obligation to pay only interest , the dividend is not applicable on Call paid in advance.

ANIL JANGID

ANIL JANGID (Expert)
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25 December 2009 AGREE

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Dr. Sharad Garg

Dr. Sharad Garg (Querist)
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26 December 2009 Thanks for the reply experts but, Sec 92 mentions payment of interest at a rate not more than 6% on calls paid in advance. Sec 93 mentions that dividends may be paid on advance calls if so authorised by AoA. So I wish to know if AoA mentions payment of dividend on calls paid in advance, will a company be required to pay both the interest as well as dividend on such advance amount?

Anjani Pratap Tiwari

Anjani Pratap Tiwari (Expert)
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28 December 2009 yes