Which of the following is incorrect about the minimum subscription?Minimum subscription is the minimum amount that, in the opinion of directors, must be raised to meet the needs of business operations of the company relating to:
- Apreliminary expenses payable by the company and any commission payable in connection with the issue of shares
- Bworking capital
- Cpersonal needs of shareholders
- Dany other expenditure required for the usual conduct of business operations.
Solution & Step-by-step Explanation
Minimum subscription is required to ensure that the company raises enough funds to run its legitimate business business infrastructure, purchase property, pay preliminary expenses, and maintain working capital. It can never be used to satisfy the personal needs of individual shareholders. Thus, option C is incorrect.