Question

Under the Companies Act what does every member of a Producer Company receive on the share capital contributed?

A A fixed monthly income Correct Answer Incorrect Answer
B A limited return on their investment Correct Answer Incorrect Answer
C A percentage of the company's profits Correct Answer Incorrect Answer
D Either a or b or c Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

A limited return on their investment, Explanation: Section 378E - Benefits to Members: (2) Every Member shall, on the share capital contributed, receive only a limited return: Provided that every such Member may be allotted bonus shares in accordance with the provisions contained in section 378ZJ.

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