New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    According to the Companies Act which of the following

    statement is true regarding set-off against subsequent calls in a company when all creditors have been paid in full?
    A Money due to a contributory from the company cannot be allowed by way of set-off against subsequent calls Correct Answer Incorrect Answer
    B Set-off against subsequent calls is only allowed in limited companies Correct Answer Incorrect Answer
    C Set-off against subsequent calls is not permitted after all creditors have been paid in full Correct Answer Incorrect Answer
    D Money due to a contributory from the company can be allowed by way of set-off against subsequent calls Correct Answer Incorrect Answer

    Solution

    Section 295. Payment of debts by contributory and extent of set-off: (3) In the case of any company, whether limited or unlimited, when all the creditors have been paid in full, any money due on any account whatever to a contributory from the company may be allowed to him by way of set-off against any subsequent call.

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