Match List – I with List – II.

Choose the correct answer from the options given below.

(A)-(II), (B)-(III), (C)-(IV), (D)-(I)

The correct answer is Option (2) → (A)-(II), (B)-(III), (C)-(IV), (D)-(I)

* Minimum Subscription - 90% of issued amount according to SEBI. The company is required to attain a minimum subscription within 120 days from the issuance of the prospectus. If this requirement is not met within the specified time frame, the company cannot proceed with the allotment of shares, and it must refund the application money within 130 days from the prospectus issuance date. It's important to note that as per SEBI (Disclosure and Investor Protection) Guidelines, 2000 [6.3.8.1 and 6.3.8.2], the minimum subscription of capital cannot be less than 90% of the total amount offered.

* Prospectus- Invitation to the public for Subscription of shares. Prospectus is an invitation to the public that a new company has come into existence and it needs funds for doing business. It contains complete information about the company and the manner in which the money is to be collected from the prospective investors.

* Reserve Capital- Reserved portion of uncalled capital. A company may set aside a portion of its uncalled capital, which would only be called upon in the event of the company's liquidation or winding up. This uncalled amount is referred to as the company's 'Reserve Capital' and is exclusively reserved for the satisfaction of creditors during the liquidation process.

* Memorandum of Association- Fundamental provisions & important clause of company's constitution. The Memorandum of Association is a document that contains the fundamental conditions upon which a company is allowed to operate. It guides the company. Authorised capital is stated in MOA.