Where there is no articles of association of its own, which of the following provisions applies as per Table A.
Where there is no articles of association of its own, which of the following provisions applies as per Table A.
Solution
When a company does not have its own Articles of Association, the provisions of Table A (Schedule I of the Companies Act) apply as the default rules for governance.
Regarding calls on shares, Table A contains specific provisions. Let's examine each option:
Option 1 states minimum 15 days' notice is required. However, Table A requires at least 14 days' notice (not 15 days) to be given to shareholders before making a call.
Option 2 states calls must be uniform on shares of all classes. This is incorrect because Table A requires calls to be made uniformly only on shares of the same class, not across all classes. Different classes can have different call amounts.
Option 3 states one month must elapse between two successive calls. This is the correct provision under Table A. This ensures shareholders get adequate time between consecutive payment obligations and prevents financial burden from frequent calls.
Option 4 states call amount should not exceed 20% of face value. Table A actually permits each call to be up to 25% of the face value (not 20%), so this limit is incorrect.
The purpose of requiring one month gap between calls is to provide shareholders sufficient time to arrange funds and prevent the company from making back-to-back demands that could create financial hardship for members.
Related questions:
2025: 13 May Shift 1
2026: 29 May Shift 1
2025: 27 May Shift 2
2026: 23 May Shift 2