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...
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
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.
Related questions:
2025: 15 May Shift 1
2026: 6 June Shift 1