Question

Interest on calls-in-arrears is charged according to Table A at ______.

Options

• 5%

• 6%

• 8%

• 11%

Answer 1

Interest on calls-in-arrears is charged according to Table A at 5%.

Explanation:

A company's Articles of Association typically authorize the board to modify interest at a specified rate on calls in arrears. If the articles are silent in this regard, the rule in Table A will apply, which stipulates that interest at a rate not exceeding 5% p.a. must be paid on all unpaid amounts on: shares for the period between the day specified for payment and the day of actual payment thereon.