Question

Given below are two statements:

Statement I: When the directors of a Joint-stock company decide to ask for the ‘Call money’ they have to make sure that the amount called is not more than 25% of the ‘Issue price’ of the share.

Statement II: There must be an interval of at least one month between the making of the two calls unless otherwise provided by the Articles of Association of the company.

In the light of the above statements, choose the most appropriate answer from the options given below:

पर्याय

• Both Statement I and Statement II are correct

• Both Statement I and Statement II are incorrect

• Statement I is correct but Statement II is incorrect

• Statement I is incorrect but Statement II is correct

Answer 1

Statement I is incorrect but Statement II is correct

Explanation:

Statement I: Incorrect – As per the Companies Act & Table F, the limit is 25% of the nominal (face) value, not the issue price.

Statement II: Correct – This condition is clearly mentioned in the provisions.