What is the specific section in the Companies Act, 1956, that outlines the interest rate for calls in arrears?

Preview

The specific section in the Companies Act, 1956, that outlines the interest rate for calls in arrears is Section 108. This section specifies that if a shareholder fails to pay the amount due on allotment or calls by the stipulated deadline, the company can charge interest on the unpaid amount at a rate not exceeding 5% per annum for the period from the due date until the actual payment is made.

Preview

Here is the relevant excerpt from Section 108 of the Companies Act, 1956:

"If any shareholder fails to pay any call or instalment of a call on the day appointed for payment thereof, the Board may, at any time thereafter, send to him a notice requiring payment of the amount due from him together with interest thereon at a rate not exceeding five per cent per annum from the date fixed for payment until the date of actual payment."

This means that the maximum interest rate that can be charged on calls in arrears under the Companies Act, 1956, is 5% per annum.

What is the specific section in the Companies Act, 1956, that outlines the interest rate for calls in arrears?

Preview

Here is the relevant excerpt from Section 108 of the Companies Act, 1956:

This means that the maximum interest rate that can be charged on calls in arrears under the Companies Act, 1956, is 5% per annum.