Corporate and Other LawsMCQQuestion 12525 of 300
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Under Section 50 of the Companies Act, 2013 read with Table F of Schedule I, what is the maximum statutory rate of interest per annum that may be paid by a company on calls received in advance, if authorized by its Articles?

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

✅ Option A — 12% per annum

All Options:

  • A12% per annum ✓
  • B6% per annum
  • C10% per annum
  • D18% per annum

Detailed Solution & Explanation

Correct Answer: Option **A** (12% per annum) **Statutory Provision (Section 50 - Company to Accept Unpaid Share Capital):** Under Table F Regulation 18 of the Companies Act, 2013, the Board may pay interest at a rate not exceeding 12% per annum on the amount received in advance of calls, unless agreed otherwise by the company in general meeting. Therefore, Option A is the correct legal position under the ICAI curriculum.

More Questions from Corporate and Other Laws

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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.

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