Question

State, whether the following statements are True or False.

In public issue whole amount of share capital is called at once.

Answer 1

False

Explanation: It is not necessary that the whole amount of share capital, i.e. authorized capital, is called up at once. The part of authorized capital that is issued to the shareholders is called issued capital, whereas the part that remains unissued is called unissued capital. The unissued capital of the company can be issued anytime during the life time of the company.