Shaka Ltd was in financial difficulty. In order to raise capital, it approached Milton to purchase 100,000 ordinary shares of R1 each at R0·75 per share. Milton was told that the company would never ask him to pay the balance of R0·25 per share. Milton agreed to buy the shares. However, two years later, the company went into liquidation. The liquidator has asked Milton to pay the balance of R0·25 on 100,000 ordinary shares.Required:Advise Milton whether he would be required to pay the balance of the partly-paid shares. (10 marks)
