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When there's no Article of Association of its own, the following provision of table A will apply at the time of issue of shares...

Solution

✅ Correct Option: 3

When a company does not have its own Articles of Association, the provisions of Table A of the Companies Act automatically apply.

Regarding Call on Shares, Table A specifies the following key provisions:

Period between two calls: Minimum of 1 month (not 3 months) must elapse between two successive calls.

Notice period for call: Minimum of 14 days written notice must be given to shareholders before requiring them to pay the call money.

Amount of each call: No single call should exceed 25% of the face value of the share (not "more than" but "not exceeding").


Analyzing each option:

Option 1 is incorrect - Table A requires 1 month gap between calls, not 3 months.

Option 2 is incorrect - The notice period is 14 days, not 21 days. (21 days notice is required for general meetings, not for calls)

Option 3 is correct - Table A mandates a minimum of 14 days notice to shareholders for payment of call money.

Option 4 is incorrect - Each call should not exceed 25% (maximum limit), not be more than 25%.

The correct answer is Option 3.

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