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Question

________ is sent to the shareholders whenever an amount becomes payable on shares.

A

Share Application Letter

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B

Share Allotment Letter

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C

Share Call Letter

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D

None of above

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Solution

The correct option is C Share Call Letter
Share call letter is sent to the shareholders whenever an amount becomes payable on shares. When unpaid or partly paid shares are issued, the company retains the right to collect the unpaid amount. To do so, the directors can send a call letter to holders of partly paid shares requiring them to pay the unpaid amount to the company.

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