Instructions: Read the passage carefully and answer the following questions 46-50) XYZ Ltd is registered with an authorised capital of Rs. lakh divided into lakh equity shares of Rs. each. The company is in manufacturing of pickles and spices. Due to the increase in demand of packed food in the market they decided to diversify its operation. For this purpose they decided to issue lakh equity share of Rs. each. The company issued equity shares to a vendor to supply the machinery required to manufacture the packed food. Rest of the equity shares were issued to general public for subscription. The application were received for equity shares. Due to undersubscription of equity shares the shares were not issued to public. If the company is unable to get minimum subscription, the shares cannot be issued and the amount must be refunded within 8 days from the date of closure. If not, company shall be liable to pay ______ interest p.a.
- A
- B
- C
- D
Solution & Step-by-step Explanation
Under the Companies Act and SEBI guidelines, if the refund is not made within the stipulated period (typically 8-15 days depending on exact provisions cited in syllabus), the company and its directors are liable to pay interest at the rate of p.a. for the delayed period.