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unpaid shares

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asked on Jun 21, 2014 at 21:32
by   Share
Dear All,

Question : What is the effect of winding up towards contributory of the company?

I found this answer on Insolvency Malaysia website:

The contributory is not personally liable towards the company debts. However, the liquidator has power to direct the contributory to pay any unpaid shares.

What does it mean of the unpaid shares? it is mean the different between authorized capital and paid up capital of Sdn Bhd? Example : if authorized capital is RM100k and paid up capital is RM60k, shortage of RM40k can be the personal liability of the Sdn Bhd's share holder?

Anyone pls clarify.

Thank you very much!
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2 Answers

answered on Jul 16, 2014 at 14:11
by   vkpc
What does it mean of the unpaid shares? it is mean the different between authorized capital and paid up capital of Sdn Bhd?
Yes.

Example : if authorized capital is RM100k and paid up capital is RM60k, shortage of RM40k can be the shared liability of the Sdn Bhd's share holders?
Yes.
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answered on Sep 30, 2016 at 16:03
by   JTan
What does it mean of the unpaid shares? it is mean the different between authorized capital and paid up capital of Sdn Bhd? 
No. authorised capital is capital the company is allowed to issued to whereas paid up capital is the total money received when a share is issued, whether at-par or at a premium
Unpaid shares are shares ISSUED to shareholders but remains unpaid by the shareholders. In this case the shareholders are liable for the unpaid shares and the company may make a capital call when it needs the money.

Example : if authorized capital is RM100k and paid up capital is RM60k, shortage of RM40k can be the shared liability of the Sdn Bhd's share holders? 
In the above example the paid up capital is RM60k, meaning the company is liable up to RM60k.
Lets say a share is worth RM1/=. 90,000 shares have been issued but only 60,000 has been paid. The balance is issued but unpaid shares.
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