Question

If articles are silent regarding interest on calls in arrears the minimum rate of interest to be charged is what?

Answer 1

But if the Articles are silent, shall be applicable a rate of 5% p.a., on the amount of Calls-in-arrears. However, the directors have the right to waive off the payment of interest on calls-in-arrears. Interest on calls-in-arrears is a nominal account. It is the income of the company, therefore, it is credited.