If an entity performs a share split on a partly paid share,the split must be done in such a way as to divide the uncalled portion equally among the shares issued.

Question

Quizplus · Accepted Answer

As per the Companies Act, if a share split is performed on a partly paid share, the uncalled portion should be divided equally among the shares issued. This ensures that each shareholder has an equal share in the company's assets and liabilities. Hence, the statement is true.

If an Entity Performs a Share Split on a Partly