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Liability of a shareholder is limited to ………………… of the shares allotted to him :
Paid up Value
Called up value
Face value
Reserve Price
Face value is the amount of a debt obligation that is stated as payable in a debt document. The face value does not include any of the interest or dividend payments that may later be paid over the term of the debt instrument. Face value may differ from the amount paid for a debt instrument, since the amount paid may incorporate a discount or premium from the face value. On the maturity date of the debt instrument, its issuer will redeem it for the face amount. A common application of the term is in regard to the face value of a bond. This is the amount payable, as stated on the bond certificate. A typical bond face value is $1,000. The face value of a bond may also be known as its par value.
By: DATTA DINKAR CHAVAN ProfileResourcesReport error
KAUSHAL KISHORE
in case of premium share, my liability could not be limited only to the face value of the share. Ex- if share has face value of Rs.10 and Premium is of Rs1, then my liability is expected to be Rs.11. this way its more logical to think, purely in my opinion, that my liability at any time is limited only to the amount that has been called up. Please advise.
your point of view is as per a given point of time where the amount is called up and you pay as per the amount of liability you are supposed to pay at that time. the question is general in nature. The total liability you have towards the company is the face value of share i.e. the extent to which you decided to pay for the shares to the company.
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