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:

Minimum subscription refers to the minimum amount that must be raised by a company through public subscription of shares before it can proceed with allotment. This amount, as determined by the directors, must be sufficient to cover the initial and operational needs of the company.

The purpose of minimum subscription is to ensure the company has adequate funds to commence its business operations. It typically covers:

• Preliminary expenses (formation costs, legal fees, etc.) and commission on share issue
• Purchase price of property or assets needed
• Working capital for day-to-day operations
• Repayment of any borrowed amounts
• Other expenditure required for conducting business

Option 3 is incorrect because minimum subscription is meant exclusively for the company's business requirements and cannot be used for personal needs of shareholders. Shareholders are the owners/investors of the company who contribute capital. The funds raised through share subscription are company funds meant for business purposes, not for meeting personal expenses of shareholders.

The other three options correctly describe the legitimate uses of minimum subscription - preliminary expenses and commission (Option 1), working capital (Option 2), and business operational expenditure (Option 4) are all valid business needs that minimum subscription is intended to fulfill.