Corporate and Other LawsMCQQuestion 12524 of 300
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Under Section 42(6) of the Companies Act, 2013, a company making an offer under private placement shall allot its securities within how many days from the date of receipt of the application money?

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — Within 60 days from the date of receipt of application money

All Options:

  • AWithin 60 days from the date of receipt of application money ✓
  • BWithin 30 days from the date of receipt of application money
  • CWithin 45 days from the date of receipt of application money
  • DWithin 90 days from the date of receipt of application money

Detailed Solution & Explanation

Correct Answer: Option **A** (Within 60 days from the date of receipt of application money) **Statutory Provision (Section 42 - Allotment Time Limit in Private Placement):** Section 42(6) states that a company making an offer or invitation under this section shall allot its securities within sixty days from the date of receipt of the application money for such securities. Therefore, Option A is the correct legal position under the ICAI curriculum.

Key Concepts to Understand

Limit

The value that a function f(x) approaches as the input x approaches a particular value. Written as lim(x→a) f(x) = L. It is the foundational concept of Calculus and is essential for defining derivatives and integrals.

More Questions from Corporate and Other Laws

Under Section 77(1) of the Companies Act, 2013, within what initial statutory period must a company register a charge created on its property or assets with the Registrar of Companies (ROC)?

Under Rule 3(3) of the Companies (Acceptance of Deposits) Rules, 2014, what is the maximum aggregate limit of deposits that an eligible public company can accept from its members and the public?

Which of the following is a requirement for a company to buy back its securities under the Companies Act, 2013?

What is the tax treatment of buyback of shares by an unlisted company?

Explain the concept of differential rights and its significance in the context of buyback of securities.

What are the legal provisions governing the buyback of securities by a company in India?

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