What will be the rate of interest on calls-in-advance in the absence of any provision in the Articles of Association of a company ?

CS Executive · Corporate and Management Accounting · PYQS · June 2022
What will be the rate of interest on calls-in-advance in the absence of any provision in the Articles of Association of a company ?
(A) 12% per annum
(B) Rate decided by the Annual General Meeting
(C) Any rate decided by the Board of Directors
(D) Rate decided by the Board of Directors subject to a maximum of 12% per annum

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Corporate Accounting

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