Is a separate capital account opened for each shareholder by the company?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- No.
No, a separate capital account is not opened for each shareholder by the company.
Since the number of shareholders is very very large, a separate capital account cannot be opened for each one of them. Hence, innumerable streams of capital contribution merge their identities in a common capital account called as ‘Share Capital Account’.