State which of the following statements are true:
At the time of issue of shares, the maximum rate of securities premium is 10%.
False. The provided answer key indicates this statement is incorrect.
A company is an artificial person.
True. The company is an artificial person created by law.
Shareholders of a company are liable for the acts of the company.
False. The provided answer key indicates this statement is incorrect.
Every member of a company is entitled to take part in its management.
False. The provided answer key indicates this statement is incorrect.
Company’s shares are generally transferable.
True. The shares of a public limited company are freely transferable.
Share application account is a personal account.
True. The provided answer key indicates this statement is correct.
The director of a company must be a shareholder.
True. The provided answer key indicates this statement is correct.
Paid up capital can exceed called up capital.
False. The provided answer key indicates this statement is incorrect.
Capital reserves are created from capital profits.
True. The provided answer key indicates this statement is correct.
The part of capital which is called up only on winding up is called reserve capital.
True. The provided answer key indicates this statement is correct.
Explanation
The answers are determined directly from the 'Answers to Test your Understanding – I' section provided in the context. For statements (a) and (d), additional context is found in the text describing the company as an artificial person and the transferability of shares. For other statements, the classification as True or False relies strictly on the provided answer key.