Select the correct statements with regard to accounting for Share Cap…

The correct answer is Option (1) → A and B only

(A) Provisions of ‘Table F’ authorise the directors to forfeit the shares. Correct. A company’s articles usually follow Table F, which lets the directors forfeit shares for non-payment of calls.

(B) The maximum number of members in a private company is 200. Correct. A private company limits its members to 200, not counting its employees.

(C) The minimum subscription of capital can not be less than 10% of issued capital. Incorrect. Minimum subscription cannot be less than 90% of the issued amount; if it is not received, the whole subscription is refunded.

(D) Subscribed capital is also called nominal capital. Incorrect. Nominal capital is another name for authorised capital, the most the company may issue. Subscribed capital is only the part of the issued capital that the public has actually taken up.