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Question
If a company is not able to refund the excess amount of share within the reasonable time. The Company will give them Interest @ _______.
If a company is not able to refund the excess amount of share within the reasonable time. The Company will give them Interest @ _______.
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Solution
The correct option is A 15% p.a
The company usually issues a limited number of shares but public subscribes for shares more than issued by the company. The excess amount received by the company on such shares has to be returned within 30 days to shareholders with a notice. If the company fails to pay back the excess amount within the time limit, a 15% interest has to be paid on the excess amount and this statement has been clarified by the companies act 2013 too under its section 67A.
The company usually issues a limited number of shares but public subscribes for shares more than issued by the company. The excess amount received by the company on such shares has to be returned within 30 days to shareholders with a notice. If the company fails to pay back the excess amount within the time limit, a 15% interest has to be paid on the excess amount and this statement has been clarified by the companies act 2013 too under its section 67A.
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