The Articles of Association of a company may empower the directors to charge interest at a stipulated rate on calls in arrears. If the articles are silent in this regard, the rule contained in Table F shall be applicable which states that the interest at a rate not exceeding ......... p.a.

10%

Correct answer: Option (2) → 10%

Concept: Interest on calls-in-arrears when the Articles are silent – Table F, from Accounting for Share Capital.

If the Articles of Association do not specify a rate, the rule in Table F applies, under which the company may charge interest on calls-in-arrears at a rate NOT exceeding 10% p.a. on the unpaid amount. Hence Option (2).