Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

When a company does not have its own articles of association, provisions of which table will apply:

Options:

Table A

Table F

Table C

Table E

Correct Answer:

Table A

Explanation:

The correct answer is option 1- Table A.

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

(d) A minimum of 14 days’ notice is given to the shareholders to pay the amount.