Question

A company must collect minimum subscription amount within ________ days.

• A. 90
  
• B. 100
• C. 120
• D. 160

Answer 1

The correct option is C 120

A company needs to achieve the minimum subscription amount i.e. 90% of the issued amount so that its shares can be issued. A company is given a time limit of 120 days for the collection of the minimum subscription amount. The time period should be calculated from the date of opening of the issue. Moreover the minimum subscription should be collected within a period of 30 days from the date of issue of the prospectus.

Thus, the correct answer is C.