Question

What is the rate of interest on calls in advance if an article of association of the company is silent?

विकल्प

• 6%

• 20%

• 12%

• 15%

Answer 1

6%

Explanation:

'Because Calls-in-Advance is a liability of the corporation, it is required by the Articles to pay interest on such sum from the date of receipt until the day when the applicable call is due for payment.' The rate at which interest is payable is typically specified in the Articles. However, if the Articles are silent on this subject, it applies, which allows for interest on calls in advance at a rate not to exceed 6% p.a.