Section 50: Company to accept unpaid share capital, although not called up
This section allows a company to accept unpaid share capital from its members under certain conditions and outlines the voting rights associated with such payments.
The section, clause by clause
What the section says
In plain terms
(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.
A company can accept unpaid share capital from a member if its articles allow it, even if no part of that amount has been called up, and this can be for the whole or a part of the amount remaining unpaid on any shares held by the member.
(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.
A member who pays unpaid share capital under this rule will not have voting rights for that amount until it has been called up.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. Sub-section (5) omitted by Act 29 of 2020, s. 8 (w.e.f. 21-12-2020).
Referred to by
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.