Uncalled share capital meaning

Uncalled share capital is the portion of the price of issued, partly paid shares that the company has not yet demanded from the shareholder. It is the balance unpaid on those shares, which becomes payable only if and when a valid call is made under the company’s articles and the terms of issue. The expression is a widely used descriptive term in company and insolvency practice rather than a defined statutory term. The underlying rules on unpaid amounts, calls and members’ liability are set out primarily in the Companies Act 2006 (UK) and the Insolvency Act 1986 (England & Wales and Scotland) or the Insolvency (Northern Ireland) Order 1989, and in the Companies Act 2014 and Irish insolvency legislation (Ireland). Key features and practical significance: - Arises only where shares are issued partly paid (the unpaid balance remains uncalled). - When a call is made, the amount becomes a debt due from the member; default may trigger interest, forfeiture or a lien, as provided in the articles. - On a winding up, a liquidator can make calls to collect uncalled amounts to meet company liabilities. Usage is broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland. Uncalled share capital is...