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What Is a Share?

In case of a ...

Question

In case of a company limited by shares, a shareholder has paid full on his shares, his liability will be.

A

As decided by directors

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B

An equal amount to already paid up value of share

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C

Nil

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D

None of these

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Solution

The correct option is B Nil
In a company limited by shares, the liability of the shareholders for company debts is limited to the capital originally invested in the business i.e. the nominal value of the shares they own

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Q. On 1.1.2015, X Ltd. makes an issue of 1,00,000 equity shares of Rs. 100 each payable as follows:

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Q. On 1st May,2014, Directors of a Limited Company forfeited 200 shares of ₹ 20 each , ₹ 15 per share called-up, on which ₹ 10 per share has been paid by A , the amount of the first call of ₹ 5 per share being unpaid . Ten days Later, the Directors reissued the forfeited shares to B credited as ₹ 15 per share paid-up , for a payment of ₹ 10 per share.
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Q. a) A company with 10,000 shares of Rs 100 each declares an annual dividend of

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