Question

The minimum amount of capital which must be subscribed by the public before allotment is called:

• A. allotment money
• B. minimum subscription
• C. subscribed capital
• D. None of these

Hint:

No allotment of shares can be made unless the minimum subscription (at least 90% of issue) is received.

Answer 1

The Correct Option is B

Step 1: Understand the term.
Minimum Subscription is the least amount that must be raised by a company through issue of shares before it can legally allot those shares. Step 2: Legal requirement.
As per SEBI guidelines, at least 90% of the issued amount must be subscribed. Step 3: Difference from other options.
Allotment money is just one installment.
Subscribed capital refers to the total applied amount.
Only option (B) correctly defines the condition for allotment.