Which of the following is true in relation to a company and the issue of shares ?

A. A company is an artificial person with separate legal entity, perpetual succession and a common seal.

B. Share calls are to be made as per the provisions of the articles of association.

C. Minimum subscription of 75% is must for issue of shares.

D. The procedure for accounting for the issue of both equity and preference shares is the same. To differentiate between the two, the words 'Equity' and 'Preference' is prefixed to each and every instalment.

Choose the correct answer from the options given below:

A, B and D only

Correct answer: Option (1) → A, B and D only

Concept: A company is an artificial legal person; share calls are made as per the Articles of Association; and the accounting for equity and preference share issues is identical except for the prefix – per Accounting for Share Capital.

Statements A (artificial person with separate legal entity, perpetual succession and common seal), B (calls made as per the Articles of Association) and D (same procedure for equity and preference shares, differentiated by prefix) are all correct. Statement C is wrong because the minimum subscription required is 90% of the issued amount (per SEBI guidelines), not 75%. Hence A, B and D only.