Paragraph 57 Failure to comply with call notice: automatic consequencesI1

United Kingdom

(1)

If a person is liable to pay a call and fails to do so by the call payment date—

(a)

the directors may issue a notice of intended forfeiture to that person, and

(b)

until the call is paid, that person must pay the company interest on the call from the call payment date at the relevant rate.

(2)

For the purposes of this article—

(a)

the “call payment date” is the time when the call notice states that a call is payable, unless the directors give a notice specifying a later date, in which case the “call payment date” is that later date;

(b)

the “relevant rate” is—

(i)

the rate fixed by the terms on which the share in respect of which the call is due was allotted;

(ii)

such other rate as was fixed in the call notice which required payment of the call, or has otherwise been determined by the directors; or

(iii)

if no rate is fixed in either of these ways, 5 per cent per annum.

(3)

The relevant rate must not exceed by more than 5 percentage points the base lending rate most recently set by the Monetary Policy Committee of the Bank of England in connection with its responsibilities under Part 2 of the Bank of England Act 1998^f1.

(4)

The directors may waive any obligation to pay interest on a call wholly or in part.

Paragraph 57 Failure to comply with call notice: automatic consequencesI1

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