What happens with a contributing share when the company calls up the remaining nominal value?

What happens with a contributing share when the company calls up the remaining nominal value?

• A. They must pay the remaining amount to the company
• B. They gain voting rights
• C. They are automatically converted to ordinary shares
• D. They receive extra dividends

Answer: (A)

When a share has only part of its nominal value paid, it is described as a contributing (partly paid) share. If the company calls up the remaining nominal value, the shareholder must pay the balance to the company. This payment completes the share’s paid-up capital, turning it into a fully paid share and aligning the shareholder’s liability with the full nominal value. The call itself doesn’t grant new rights like voting or dividends, nor does it cause automatic conversion of the share. Those outcomes depend on the share being fully paid and on the company’s rules.

When a share has only part of its nominal value paid, it is described as a contributing (partly paid) share. If the company calls up the remaining nominal value, the shareholder must pay the balance to the company. This payment completes the share’s paid-up capital, turning it into a fully paid share and aligning the shareholder’s liability with the full nominal value. The call itself doesn’t grant new rights like voting or dividends, nor does it cause automatic conversion of the share. Those outcomes depend on the share being fully paid and on the company’s rules.