As per Table F, the rate of interest provided on calls in advance can't exceed ...........p.a?

Calls in Advance refers to the amount received by a company from shareholders before it is actually called up. Since the company receives this money earlier than required, it may pay interest to the shareholders for providing funds in advance.

As per Table F of the Companies Act (which contains model articles for companies limited by shares), the maximum rate of interest that can be paid on calls in advance is 12% per annum.

This is a regulatory limit to ensure:

• Companies don't offer excessively high interest rates to attract early payments
• There's uniformity in the treatment of shareholders
• The interest remains reasonable and doesn't become a burden on the company

If a company wishes to pay interest on calls in advance, it must:

1. Have a provision in its Articles of Association
2. Not exceed the 12% p.a. limit prescribed in Table F

The interest on calls in advance is calculated from the date of receipt until the date when the amount becomes actually payable.

Formula: Interest on Calls in Advance = $\text{Amount Received in Advance} \times \frac{\text{Rate}}{100} \times \frac{\text{Time Period}}{12}$

Correct Answer: Option 2 - 12%