If a company fails to receive the minimum subscription within 120 days from the date of issue of the prospectus, within how many days from the date of issue of the prospectus should the company refund the application money?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 130 days
If the minimum subscription is not received within 120 days of the issue of the prospectus, the company cannot allot shares and must return the application money within 130 days of the date of issue of the prospectus.
NCERT (2026-27 edition): |