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 of capital that must be raised by a company through its public issue to commence business operations.

The purpose of minimum subscription is to ensure the company has adequate funds for its business operations, not for shareholders' personal requirements.

Examining each option:

Option 1: Preliminary expenses and commission on share issue → These are legitimate business expenses that the company incurs. ✓ Correct

Option 2: Working capital → Essential for day-to-day business operations. ✓ Correct

Option 3: Personal needs of shareholders → Minimum subscription is meant for the company's business needs, not for fulfilling personal requirements of shareholders. This is completely unrelated to the company's operational needs. ✗ Incorrect

Option 4: Other expenditure for usual business operations → Covers other legitimate business expenses. ✓ Correct

The minimum subscription ensures that the company receives adequate capital to:

• Pay initial setup costs
• Meet operational expenses
• Commence business activities

It has no connection with shareholders' personal needs. Shareholders invest in the company for returns, not to get their personal expenses funded.

Answer: Option 3 is incorrect about minimum subscription.