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If a company is not able to refund the excess amount of share within the reasonable time. The Company will give them Interest @:
- a)15%p.a.
- b)5%p.a.
- c)7% p.a.
- d)10% p.a.
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
If a company is not able to refund the excess amount of share within t...
The company usually issues a limited number of shares but public subscribes for shares more than issued by the company. The excess amount received by the company on such shares has to be returned within 30 days to shareholders with a notice. If the company fails to pay back the excess amount within the time limit, a 15% interest has to be paid on the excess amount and this statement has been clarified by the companies act 2013 too under its section 67A.
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If a company is not able to refund the excess amount of share within t...
The correct answer is option 'A' i.e. 15% p.a. Let's understand why.
Reason for Interest Payment
When a company issues shares, it mentions a face value of the share. Sometimes, investors end up paying more than the face value of the share. This excess amount paid is called "Excess Share Application Money". The company has to refund this excess amount to the investors. However, if the company is not able to refund this amount within a reasonable time, it has to pay interest on it.
Rate of Interest
As per Section 73 of the Companies Act, 2013, if a company fails to refund the excess share application money within 15 days from the date of allotment, it has to pay interest to the investor. The rate of interest is 15% per annum or such other rate as may be prescribed by the Central Government. Therefore, option 'A' is the correct answer.
Conclusion
In conclusion, if a company is unable to refund the excess amount of share within a reasonable time, it has to pay interest to the investors. As per the Companies Act, 2013, the rate of interest is 15% per annum or such other rate as may be prescribed by the Central Government.
Reason for Interest Payment
When a company issues shares, it mentions a face value of the share. Sometimes, investors end up paying more than the face value of the share. This excess amount paid is called "Excess Share Application Money". The company has to refund this excess amount to the investors. However, if the company is not able to refund this amount within a reasonable time, it has to pay interest on it.
Rate of Interest
As per Section 73 of the Companies Act, 2013, if a company fails to refund the excess share application money within 15 days from the date of allotment, it has to pay interest to the investor. The rate of interest is 15% per annum or such other rate as may be prescribed by the Central Government. Therefore, option 'A' is the correct answer.
Conclusion
In conclusion, if a company is unable to refund the excess amount of share within a reasonable time, it has to pay interest to the investors. As per the Companies Act, 2013, the rate of interest is 15% per annum or such other rate as may be prescribed by the Central Government.
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If a company is not able to refund the excess amount of share within t...
Refund application money along with interest @12% p.a. after the expiry of 60 days, and· It shall be treated as a public deposit after the expiry of the said 15 days.
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If a company is not able to refund the excess amount of share within the reasonable time. The Company will give them Interest @:a)15%p.a.b)5%p.a.c)7% p.a.d)10% p.a.Correct answer is option 'A'. Can you explain this answer?
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