In the case of shares, the rate of underwriting commission paid or agreed to be paid shall not exceed :

CS Executive · Corporate and Management Accounting · PYQS · June 2023
In the case of shares, the rate of underwriting commission paid or agreed to be paid shall not exceed :
(A) five per cent (5%) of the price at which the shares are issued or a rate authorized by the articles, whichever is less
(B) five per cent (5%) of the price at which the shares are issued or a rate authorized by the articles, whichever is higher
(C) two and half per cent (2.5%) of the price at which the shares are issued or a rate authorized by the articles, whichever is less
(D) two and half per cent (2.5%) of the price at which the shares are issued or a rate authorized by the articles, whichever is higher

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Corporate Accounting

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