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Question
According to Table ‘F’ of Schedule I interest on calls in advance may be paid at a rate not exceeding ______% p.a.
Options
10
12
MCQ
Fill in the Blanks
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Solution
According to Table ‘F’ of Schedule I interest on calls in advance may be paid at a rate not exceeding 12% p.a.
Explanation:
The maximum rate of interest that can be paid on such advance payments is 12% per annum. This provision encourages shareholders to pay in advance while ensuring the company doesn’t overcompensate. However, paying interest on calls in advance is not mandatory; it is paid only if mentioned in the company’s Articles of Association.
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