Multiple choice

Directions: Choose the correct option for the given question.

The application money payable on a share should not be less than the following percentage of the face value of the share

  1. 5%

  2. 10%

  3. 20%

  4. 25%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to the Companies Act, the minimum application money payable on shares must be at least 5% of the nominal (face) value of the share. This is a regulatory requirement for public issues.

Keep practicing — related questions