According to Table F of the Companies Act, when a shareholder pays any amount on shares in advance (before the company actually calls for it), the company may pay interest on such advance payment.
The maximum rate at which this interest can be provided is 12% per annum.
This is a statutory provision to ensure that shareholders who voluntarily pay amounts in advance are compensated reasonably for the early payment, but the compensation is also capped to prevent excessive interest payments by the company.
Correct Option: 1 (12%)