While issuing the share capital for public subscription where there is no articles of association of its own, the following provisions of Table A will apply: (A) A period of one month must elapse between two calls.(B) The amount of call should not exceed 25% of the face value of the share.(C) A minimum of 7 days' notice is given to the shareholders to pay the amount.(D) Calls must be made on a uniform basis on all shares within the same class. Choose the correct answer from the options given below:
- A(A), (B) and (C) only
- B(A), (B) and (D) only
- C(A), (B), (C) and (D)
- D(B), (C) and (D) only
Solution & Step-by-step Explanation
According to Table A of Schedule I of the Companies Act, when a company does not have its own registered Articles of Association (AoA), the standard regulations governing calls on shares state:A period of at least one month must elapse between the dates of two consecutive calls. Thus, statement (A) is correct.The amount of any single call must not exceed of the nominal (face) value of the share. Thus, statement (B) is correct.A minimum of 14 days' notice (not 7 days) must be given to the shareholders specifying the time and place of payment. Thus, statement (C) is incorrect.Calls must be made on a uniform basis on all shares falling under the same class. Thus, statement (D) is correct.Therefore, statements (A), (B), and (D) are the only valid provisions.