When there's no Article of Association of its own, the following provision of table A will apply at the time of issue of shares........
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → A minimum of 14 days notice is given to the shareholders to pay the amount
Calls on shares are made under the company’s articles of association. Where a company has no articles of its own, the provisions of the model articles (Table A, now Table F under the Companies Act, 2013) apply, and one of them is that shareholders get at least 14 days’ notice to pay a call.
Why the other options are incorrect
Option (1) Period of 3 months must elapse between two calls — Incorrect. The gap required between two calls is one month, not three months.
Option (2) A minimum of 21 days notice is given to the shareholders to pay the amount — Incorrect. The notice period is 14 days; 21 days is not the figure in the provisions.
Option (4) The amount of call should be more than 25% of the face value of the share — Incorrect. The rule is the opposite: a call should not exceed 25% of the face value.
NCERT (2026-27 edition):
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