question_answer

Assertion (A):

If a company receives subscription less than 90% of the shares offered for subscription, in such a case, company cannot issue shares and amount received on application will be refunded to the applicants.

Reason (R) :

As per the Companies Act, 2013, to issue shares to the public, a company must receive 90% or above subscription of the shares offered for subscription.

Choose the Correct Option from the following:

A) Assertion and Reason both are correct and Reason is the correct explanation of the assertion

B) Assertion and Reason both are correct but Reason is not correct explanation of assertion

C) Both Assertion and Reason are not correct

D) Only Assertion is correct