Subscription Rule

Q.

What do you mean by a government company? Discuss its various features and two merits?

Q.

State the important privileges available to a private company as compared to public limited company.

Q.

Distinguish between single line stores and speciality stores. Can you identify such stores in your locality?

Q.

Briefly explain the term 'Return of Allotment'.

Q.

Differentiate between equity shares and preference shares on the basis of :

(a) Payment of dividend

(b) Refund of capital

(c) Rate of dividend

(d) Voting Rights

Q.

Write short notes on the following:

1. Minimum subscription

2. Statement in lieu of prospectus

3. Preliminary contracts

4. Procedure of allotment

Q.

Differentiate between preference shares and equity shares.

Q.

Jindal and his brothers wanted to start a new business of steel. To start up a business, what documents are required to be submitted by them to the Registrar of Companies?

Q.

What happens when there is an excess of shares?

1. Return of excess money

2. Depends upon the shares required

3. Either A or B

4. More shares are subscribed

Q.

A public company has 1 lakh shares for public subscription. Does the table shown below satisfy the minimum subscription rule as specified by SEBI?

$\begin{array}{cc}Person& SharesApplied\\ 1& 25k\\ 2& 25k\\ 3& 25k\end{array}$

1. No

2. Yes

Q.

A private limited company offered 1 lakh shares out of which 91k shares were applied to. Spite of getting applications, it couldn't go ahead with SEBI approval. The reason which stopped the company from going ahead is non-adherence to the minimum subscription rule.

1. False

2. True

Q.

A public company has 1 lakh shares for public subscription. Which of the following situation is depicted in the table shown below?

$\begin{array}{cc}Person& SharesApplied\\ 1& 25k\\ 2& 25k\\ 3& 25k\end{array}$

1. Under-subscription

2. Ideal subscription

3. None of the above

4. Over-subscription

Q.

$\begin{array}{cc}Person& SharesApplied\\ A& 20k\\ B& 20k\\ C& 20k\\ D& 20k\end{array}$

What is the minimum percentage of shares required to be subscribed?

1. 90%

2. 20%

3. Cannot be determined

4. 80%

Q.

A situation where fewer shares have to be sold than offered is called ____?

1. Under-subscription

2. None of the above

3. Capital subscription

4. Over-subscription

Q. After entering the name of the company in the register, the registrar issues a capital subscription certificate.

1. True
2. False

Q.

1. six
2. two
3. three
4. five

Q.

When people have applied for more shares than what they have been offered, it is referred to as 'over-subscription'.

1. True

2. False

Q. Return of allotment is a statement giving details about the name and address of the shareholders.

1. True
2. False

Q.

_____ refer to the people who are roped in to buy deficit shares in case of under-subscription.

1. Brokers

2. Government employees

3. Underwriters

4. None of the above