Question

Specify the rate of interest to be used on calls in arrear as per the TABLE - F.

Options

• 20% p.a.

• 16% p.a.

• 26% p.a.

• 10% p.a.

Answer 1

10% p.a.

Explanation:

When the corporation follows Table F, the rate of interest on calls in arrears should not exceed 10% p.a., according to the Companies Act of 2013. 'Calls-in-Arrears'/'Unpaid Calls' occur when a shareholder fails to pay the sum due on the allotment or on any of the calls. On Calls-in-arrears, interest at a rate of 10% must be paid for the period between the date scheduled for payment and the time of actual payment. When an article of association is silent, Table F applies.