The correct answer is option 4- (A)-(III), (B)-(IV), (C)-(I), (D)-(II).
| LIST I |
LIST II |
| (A) Calls in Arrears |
(III) This is the amount which any shareholder fails to pay
on allotment or on any of the calls. |
| (B) Calls in Advance |
(IV) Table 'F' of the Companies Act provides for the payment
of interest on this call at a rate not exceeding 12% per annum. |
| (C) Forfeiture of Shares |
(I) Shares are taken back by the company as shareholders
failed to pay one or more installments, viz. allotment money and/or call money. |
| (D) Under Subscription |
(II) This is a situation where the number of shares applied for
is less than the number for which applications have been invited for subscription. |
(A) Calls in Arrears- (III) This is the amount which any shareholder fails to pay on allotment or on any of the calls.
If shareholders fail to pay the call amount, the outstanding or unpaid calls become known as "calls in arrears." As per Companies Act, 2013, the maximum rate of interest on calls in advance is 12%p.a. As per Companies Act, 2013, the maximum rate of interest on calls in arrears is 10% p.a.
(B) Calls in Advance-(IV) Table 'F' of the Companies Act provides for the payment of interest on this call at a rate not exceeding 12% per annum.
As per Companies Act, 2013, the maximum rate of interest on calls in advance is 12%p.a. As per Companies Act, 2013, the maximum rate of interest on calls in arrears is 10% p.a.
(C) Forfeiture of Shares- (I) Shares are taken back by the company as shareholders failed to pay one or more installments, viz. allotment money and/or call money.
It may happen that some shareholders fail to pay one or more instalments, viz. allotment money and/or call money. In such circumstances, the company can forfeit their shares, i.e. cancel their allotment and treat the amount already received thereon as forfeited to the company within the framework of the provisions in its articles. These provisions are usually based on Table F which authorise the directors to forefeit the shares for non-payment of calls made. For this purpose, they have to strictly follow the procedure laid down in this regard.
(D) Under Subscription- (II) This is a situation where the number of shares applied for is less than the number for which applications have been invited for subscription.
Under subscription is a situation where number of shares applied for is less than the number for which applications have been invited for subscription. For example, a company offered 2 lakh shares for subscription to the public but the applications were received for 1,90,000 shares, only. In such a situation, the allotment will be confirmed to 1,90,000 shares and entries shall be made accordingly. However, it must be ensured that the company has received the minimum subscriptions and the company will have to refund the entire subscription amount received. |
