Which statements among the following are CORRECT?
(A) A public company's shares are generally transferable.
(B) Share application account is a personal account.
(C) The director of a company may be a shareholder.
(D) Paid up capital can exceed called up capital.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (B) and (C) only
The statements test basic features of a company and its share capital.
(A) A public company's shares are generally transferable. Correct. Shares of a public company are freely transferable; no consent of the company or other members is needed.
(B) Share application account is a personal account. Correct. It stands for the applicants (persons) whose money is held, so it is a personal account.
(C) The director of a company may be a shareholder. Correct. A director can hold shares in the company; being a director and being a shareholder do not exclude each other.
(D) Paid up capital can exceed called up capital. Incorrect. Paid up capital is called up capital minus calls in arrears, so it can be equal to or less than called up capital, never more.
NCERT (2026-27 edition):
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