Practicing Success
'To ensure that the directors have some stake in the proposed company, the Articles usually have a provision requiring them to buy a certain number of shares.' These shares are called............. |
Equity shares Preference shares Sweat equity shares Qualification Shares |
Qualification Shares |
The correct answer is option 4- Qualification Shares. To ensure that the directors have some stake in the proposed company, the Articles usually have a provision requiring them to buy a certain number of shares. They have to pay for these shares before the company obtains a Certificate of Commencement of Business. These are called Qualification Shares.
OTHER OPTIONS-
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