The correct answer is Option 1 - (A), and (C) only
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(A) Share application account is a personal account: TRUE. It represents a group of individuals who have applied for shares. Specifically, it is a Representative Personal Account.
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(B) Director of a company must be a shareholder: FALSE. Under the Companies Act, a director does not legally need to be a shareholder unless the company's own Articles of Association (AOA) require "Qualification Shares."
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(C) A company is an artificial person: TRUE. A company is a separate legal entity created by law, capable of owning property, entering contracts, and suing/being sued in its own name.
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(D) Shareholders are liable for the acts of the company: FALSE. This violates the principle of Limited Liability. Shareholders are only liable for the unpaid amount on their own shares, not for the general "acts" or debts of the company.
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(E) The part of capital called up only on winding up is Capital Reserve: FALSE. Capital called up only during winding up is Reserve Capital. "Capital Reserve" refers to profits created from capital transactions (like the sale of fixed assets).
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