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Articles of Association - What are "Calls"?

English for Specific Purposes (ESP) » Legal English

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Latest post Thu, Dec 15 2005 10:33 PM by The Doctor.. 6 replies.
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Anonymous  +  165719 Sat, 03 Dec 05 03:58 PM
I have a contract "Articles of Associatiom" of a sample company. There is a section dealing with shares. In this section, there is a paragraph saying:

"The Company may make arrangements on the issue of shares for a difference between the holders of such shares in the amount of calls to be paid and the time of payment of such calls."

I don´t understand this sentence at all. Can somebody help me?

Thank you very much in advance.
Anonymous
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Anonymous, 3 yr 353 days ago
A further sentence which is not completely clear:

"The minimum amount shall not exceed the nominal amount of each of the shares from which the stock arose."

1.  I understand, that the minimum shall not exceed the ... of any of ....! Is that correct? It would make more sense for me, if it meant "... shall not exceed the sum of the shares from which the stock arose."

2. By the way: What exactly is "stock"?? In the articles it is said, that the shares can be transferred into stock and vice versa. But what is the difference between shares and stock? My dictionary says it means both the same. But in this case, it wouldn´t make sence to put it into the articles. I suppose stock is something like a bundle of shares. That´s my one and only explanation. Sad [:(] Does anybody know?


Related discussions
Anonymous, 3 yr 353 days ago
What is the difference? In the Articles of Association of a company, it is stated that shares can be transferred into stock.

I thought both was the same. Obviously, I was wrong. Otherwise these Articles wouldn´t make sence. But they seem to be well-written.

Anonymous, 3 yr 353 days ago
I'm not an expert in this area, but I think they refer to call options.
Forbes  +  165869 Sun, 04 Dec 05 01:37 AM

Generally a share is offered "fully paid". Sometimes, however, a company may issue a share at less than its nominal value and then "make calls" to the holders of such shares to pay up the balance or part of it.

A call option is something quite different and refers to a way of trading shares.
Forbes
Joined on Thu, Jun 16 2005
Regular Member 895
Forbes  +  165871 Sun, 04 Dec 05 01:49 AM
In practical terms there is no difference between a share and stock. A share is best thought of a unit of a company. Stock is best thought of as a fund of which you own part.
Forbes
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The Doctor., 3 yr 341 days ago
Thank you very much for your help!
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