Question

State the following statement is True or False:

Minimum subscription is guaranteed by the directors.

• A. True
• B. False

Answer 1

The correct option is B False

Minimum subscription is not guaranteed by the directors. Minimum subscription refers to the minimum shares the company needs to get subscribed from the general public.

Presently, every company needs to raise 90% of the issued capital. Else the company shall refund the whole amount received.