Which of the following provisions of Table A will apply while issuing the share capital for public subscription, where there is no articles of association of its own?

A) A period of one month must elapse between two calls.

B) The amount of call should not exceed 5% of the face value of the share.

C) A minimum of 30 days notice is given to the shareholders to pay the amount.

D) Calls must be made on a uniform basis on all shares within the same class.

Choose the correct answer from the options given below.

A & D only

The correct answer is option 3- A & D only.

A) A period of one month must elapse between two calls. THIS IS TRUE. 

B) The amount of call should not exceed 5% of the face value of the share. THIS IS FALSE as  The amount of call should not exceed 25% of the face value of the share.

C) A minimum of 30 days notice is given to the shareholders to pay the amount. THIS IS FALSE as  A minimum of 14 days’ notice is given to the shareholders to pay the amount.

D) Calls must be made on a uniform basis on all shares within the same class. THIS IS TRUE. 

Where there is no articles of association of its own, the following provisions of Table A will apply:
(a) A period of one month must elapse between two calls;
(b) The amount of call should not exceed 25% of the face value of the share;
(c) A minimum of 14 days’ notice is given to the shareholders to pay the amount; and
(d) Calls must be made on a uniform basis on all shares within the same class.