Surya limited invited applications for 15,000 shares for ₹10 each at a premium of 20% per share. The amount was payable as under

On application ₹4        On allotment ₹6
On first call ₹1             On final call-Balance

Applications were received for 36,000 shares and pro-rata allotment was made to all the applicants. Directors have not made the final call. Mr. Ritesh the holder of 300 shares did not pay anything after application money. Directors forfeited these shares and re-issued them at ₹6 per share.

On the basis of following case, answer the Question.

Before forfeiture of shares of Mr. Ritesh Directors must have issued a notice for _________.

14 days

The correct answer is Option (2) - 14 days

Where there is no articles of association of its own, the following provisions of Table A will apply:
(a) A period of one month must elapse between two calls;
(b) The amount of call should not exceed 25% of the face value of the share;
(c) A minimum of 14 days’ notice is given to the shareholders to pay the amount; and
(d) Calls must be made on a uniform basis on all shares within the same class.