CBSE Class 11-commerce Answered

Define minimum subscription.

Asked by Topperlearning User | 17 Jun, 2016, 05:21: PM

Expert Answer

According to Section 39 of the Companies Act, 2013, a company shall not allot securities unless 90% of the amount stated in the prospectus on minimum subscription has been subscribed and the sum payable on application has been paid or received by the company by cheque or other instrument.

Answered by | 17 Jun, 2016, 07:21: PM