Mrs.Tishie Mulu has received a letter from a company in which she is a shareholder informing her that the company is making a call in accordance with the provisions of the articles of association. Mrs. Tishie Mulu has approached you for advise on the matter. Advise her on the following: The difference between an installment and a call.

Mrs.Tishie Mulu has received a letter from a company in which she is a shareholder informing her that the company is making a call in accordance with the provisions of the articles of association.

Mrs. Tishie Mulu has approached you for advise on the matter. Advise her on the following:

a) The difference between an installment and a call. (3 marks)

b) The rules relating to making calls on shares (12 marks)

c) The consequences of payment of a call in advance (5 marks)

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