Q.State any four requisites of a valid call on shares.

A call is a serious demand for money from shareholders, so company law and the Articles insist it be made in a specific, fair way.

A valid call on shares, under the company's Articles of Association (typically on the lines of Table F), must satisfy several requisites (any four form a complete answer):

1. Board resolution — a call can only be made by a resolution passed by the Board of Directors, not by an individual director or officer acting alone.
2. Uniformity — the call must be made on the same terms on all shares falling within the same class; the company cannot call up one shareholder's shares differently from another's within that class.
3. Notice period — at least 14 days' notice must be given before the amount is due.
4. Clear particulars — the notice (call letter) must specify the exact amount called, the time by which it must be paid, and the place/mode of payment. …