Practicing Success
Read the passage carefully and answer the following questions. |
If the company is unable to get minimum subscription the shares cannot be issued and the amount must be refunded within 8 days from the date of closure. If not, company shall be liable to pay...........% interest p.a. |
10% 15% 6% 5% |
15% |
The company has to get minimum subscription within 120 days from the date of the issue of the prospectus. If the company fails to receive the same within the said period, the company cannot proceed for the allotment of shares and application money should be returned within 130 days of the date of issue of prospectus. It is to be noted that ‘minimum subscription’ of capital cannot be less than 90% of the issued amount according to SEBI (Disclosure and Investor Protection) Guidelines, 2000 [6.3.8.1 and 6.3.8.2]. 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)]. |