Q.Why is it necessary to close the Register of Members during the procedure of making share call?

Closing the register of members freezes the shareholder list on a cut-off date, so the call is demanded from exactly the right, recorded members without confusion from transfers in progress.

When a company decides to make a call (demand the unpaid amount on partly paid shares), it must know precisely who its shareholders are and how many shares each holds. Shares, however, keep changing hands through transfers. If the register stayed open, a share might be transferred after the call is issued, and it would be unclear whether the transferor or transferee is liable to pay. To avoid this:

• The register of members is closed for a short period around the call (after due notice).
• The membership position is thereby frozen on a particular cut-off date.
• The call notice is then sent to, and the call money demanded from, only those members recorded on that date. …