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If the issue size is up to Rs. 500 crores, the issued shares should be made fully paid up within ______ of the date of allotment: 
  • a)
    6 months 
  • b)
    10 months 
  • c)
    12 months 
  • d)
    18 months 
Correct answer is option 'C'. Can you explain this answer?
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If the issue size is up to Rs. 500 crores, the issued shares should be...
Fully Paid-up Shares Requirement for Issue Size up to Rs. 500 Crores

The Companies Act, 2013 mandates that the issued shares must be fully paid-up within a specified time frame, depending on the issue size. For an issue size of up to Rs. 500 crores, the issued shares should be made fully paid up within 12 months of the date of allotment.

Explanation:

Issue size refers to the total value of securities offered for sale by a company. In case the issue size is up to Rs. 500 crores, the issuer must ensure that the shares are fully paid up within a year of the date of allotment. This means that the shareholders must pay the entire face value of the shares and any premium due, if applicable, within 12 months of the allotment date.

If the company fails to receive the full payment within the specified time frame, it can take legal action against the defaulting shareholders. The company can forfeit the shares, sell them to recover the outstanding amount, or take any other appropriate action as deemed fit.

Conclusion:

In conclusion, if the issue size is up to Rs. 500 crores, the issued shares should be fully paid up within 12 months of the date of allotment. The timely payment of the shares is crucial for the smooth functioning of the company and to avoid any legal complications.
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If the issue size is up to Rs. 500 crores, the issued shares should be made fully paid up within ______ of the date of allotment:a)6 monthsb)10 monthsc)12 monthsd)18 monthsCorrect answer is option 'C'. Can you explain this answer?
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