Which of the following is incorrect about the minimum subscription?
Minimum subscription is the minimum amount that, in the opinion of director, must be raised to meet the needs of business operations of the company relating to:
Answer & explanation
Correct answer: option 3
The correct answer is option 3- Personal needs of shareholder.
Personal needs of shareholder is the incorrect statement.
The minimum amount that, in the opinion of directors, must be raised to meet the needs of business operations of the company relating to:
- the price of any property purchased, or to be purchased, which has to be met wholly or partly out of the proceeds of issue.
- preliminary expenses payable by the company and any commission payable in connection with the issue of shares.
- the repayment of any money borrowed by the company for the above two matters.
- working capital.
- any other expenditure required for the usual conduct of business operations.