Question

Interest on calls in arrears is charged according to Table A of Schedule I to the Companies Act 1956 at the rate of __________.

• A. 5% p.a.
• B. 6% p.a.
• C. 12% p.a.
• D. 10% p.a.

Answer 1

The correct option is A 5% p.a.

Interest on calls in arrears is charged according to Table A of Schedule I to the Companies Act 1956 at the rate of 5 % per annum. Interest on call on arrears is the income of the company. Interest on call on arrears is charge on the amount which defaulter shareholders have not paid on the amount called up by company.