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.
Answer & explanation
Correct answer: option 3
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.