In public subscription, when there is no articles of association, which of the following provision is not true?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A period of three months must elapse between two calls
Where a company has no articles of its own, the model rules apply. They require a gap of one month, not three months, between two calls, so this statement is not true.
Option (1) The amount of call should not exceed 25% of the face value of the share — A true provision. No single call can be more than 25% of the face value.
Option (3) A minimum of 14 days’ notice is given to the shareholders to pay the amount — A true provision. Shareholders must get at least 14 days’ notice of a call.
Option (4) Calls must be made on a uniform basis on all shares within the same class — A true provision. All shares of one class are called at the same rate.
NCERT (2026-27 edition):
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