Accountancy Part AAccounting for Shares

The Articles of Association of a company may empower the directors to…

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.

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → 10%

NCERT (2026-27 edition):
Calls in Arrears – “… 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 10% p.a. shall have to be paid on all unpaid amounts on shares for the period intervening between the day fixed for payment and the time of actual payment thereof.”