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Explain the following term/concept. Minimum subscription - Secretarial Practice

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Question

Explain the following term/concept.

Minimum subscription

Short Note

Solution

(a) Minimum subscription is the minimum amount raised by the company for obtaining a trading certificate and to start the work of allotment of shares. This amount is mentioned in the prospectus.

(b) It must be collected within thirty (30) days from the issue of prospectus. The minimum subscription amount should be 90% of the issued capital.

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Methods of Issue of Shares
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Chapter 3: Issue of Shares - EXERCISE [Page 65]

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Balbharati Secretarial Practice [English] 12 Standard HSC Maharashtra State Board
Chapter 3 Issue of Shares
EXERCISE | Q 2. 13. | Page 65
SCERT Maharashtra Secretarial Practice [English] 12 Standard HSC
Chapter 3 Issue of Shares
Explain the following terms/concepts | Q 7

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