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State which of the following statements are true.

(a) A company is formed according to the provisions of the Indian Companies Act, 1932.

(b) A company is an artificial person

(c)Shareholders of a company are liable for the acts of the company.

(d) Every member of a company is entitled to take part in its management

(e) Company’s shares are generally transferable.

(g) The director of a company must be a shareholder.

(h) Application money should not be less than 25% of the face value of shares.

(j) Capital reserves are created from capital profits.

(k) Securities premium account is shown on the assets side of the balance sheet.

(l) The premium on issue of shares is a capital loss.

(m) At the time of issue of shares, the maximum rate of securities premium is 10%.

(n) The part of capital which is called-up only on winding up is called reserve capital.

(o) Forfeited shares cannot be issued at a discount

(p) The shares originally issued at discount may be re-issued at a premium.

1 Answer

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Best answer
(a) False

(b) True

(c) False

(d) False

(e) True

(f) True

(g) True

(h) False

(i) True

(j) True

(k) False

(l) False

(m) False

(n) True

(o) False

(p) True

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