If a Company Has Not Reached a Minimum Subscription Level

question 9

True/False

If a company has not reached a minimum subscription level within 90 days of the date of the disclosure document, the money paid in by applicants must be refunded by the company within 1 month in accordance with the requirements of ss 724(1) and (2) of the Corporations Act.

---

Definitions:

Ranking

Ordering or grading things or individuals in terms of quality, importance, or performance.

Impact

The effect or influence of one factor on another, often used to describe the outcomes or changes resulting from a particular action or policy.

Financial Accounting

Financial accounting is the branch of accounting that focuses on the preparation of financial statements for external users, such as investors and creditors.

Deficit

A situation where expenses exceed revenues, or liabilities exceed assets.