Accountancy Part AAccounting for Shares

If the condition of minimum subscription in case of the issue of shar…

If the condition of minimum subscription in case of the issue of shares is not satisfied, and the company failed to repay the entire subscription amount within 8 days from the date of closure of the subscription list. In this case, a company is liable to pay the amount with interest at the rate of …………… as section 73(2) of the Companies Act, 2013.

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → 15%

NCERT (2026-27 edition):
Minimum Subscription – “… It is to be noted that ‘minimum subscription’ of capital cannot be less than 90% of the issued amount according to SEBI (Disclosure and Investor Protection) Guidelines, 2000 [6.3.8.1 and 6.3.8.2]. If this condition is not satisfied, the company shall forthwith refund the entire subscription amount received. If a delay occurs beyond 8 days from the date of closure of subscription list, the company shall be liable to pay the amount with interest at the rate of 15% [Section 73(2)].”