What is done by the company if the minimum subscription is not received by the company?
Answer & explanation
Correct answer: option 4
‘Minimum subscription’ of capital cannot be less than 90%
of the issued amount according to SEBI (Disclosure and Investor Protection)
Guidelines, 2000. If this condition is not satisfied, the company
shall forthwith refund the entire subscription amount received. If a delay occurs
beyond 8 days from the date of closure of subscription list, the company shall be
liable to pay the amount with interest at the rate of 15% [Section 73(2)].