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A public company can charge interest on calls in arrears at the rate not exceeding :
Question

A public company can charge interest on calls in arrears at the rate not exceeding :

A.

10% p.a.

B.

11% p.a.

C.

12% p.a.

D.

13% p.a.

Correct option is A


A public company can charge interest on calls in arrears at a rate not exceeding  (a) 10% p.a.
The interest rate chargeable on calls in arrears is typically specified in a company's Articles of Association (AOA). 
· If the Articles of Association are silent: The default provisions of  Table F (a model set of Articles under the Companies Act, 2013) become applicable.
· According to Table F: A company can charge interest on the unpaid amount (calls in arrears) at a rate not exceeding 10% per annum, calculated from the due date until the date of actual payment. 

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