Practice question · Multiple choice
The law lets an S.A. be founded with capital subscribed but only partly paid up. What is that distinction protecting?
Hints
- Ask who relies on the capital figure when deciding whether to extend credit.
- Is the unpaid part a promise or an obligation?
Show the answer
A. Creditors, since the unpaid portion stays enforceable
Why
Subscribed capital is a debt owed to the company and callable. Without that, "capital" would describe money nobody was ever required to produce.
Practise Joint-Stock Companies (S.A.)
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More questions on Joint-Stock Companies (S.A.)
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