Assertion (A): A company cannot make allotment of shares unless minimum subscription is received. Reason (R): As per SEBI Guidelines minimum subscription has been fixed at 90% of the issued amount. In the context of the above two statements, which of the following is correct?

Question

KollegeApply · Accepted Answer

Both (A) and (R) are correct and (R) is the correct reason of (A). Explanation: Assertion (A) is true, A company cannot allot shares unless it receives the minimum subscription required. Reason (R) is also true, According to SEBI Guidelines, the minimum subscription is 90% of the issued amount.

AChoose Your Answer