Assertion (A): Shares cannot be allotted unless minimum subscript… - Vidyadip

MCQ

Assertion (A): Shares cannot be allotted unless minimum subscription is received.
Reason (R): SEBI has prescribed that a company issuing shares to public cannot allot shares unless it receives subscription of 90% of the shares issued.

A
Both A and R are true and R is the correct explanation of A.
B
Both A and R are true but R is not the correct explanation of A.
C
A is true but R is false.
D
A is false but R is true.

✓

Answer

(a) Both A and R are true and R is the correct explanation of A.
Explanation:
Both A and R are true and R is the correct explanation of A.

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