To determine the correct answer regarding the requirements for admission into the second-tier securities market, let's analyze each statement provided in the question.
Statements Analysis:
- Statement (i): Companies must be registered as private limited liability companies.
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This statement is not a requirement for admission into the second-tier securities market. While many companies may be private limited liability companies, the second-tier market can also include public companies. Therefore, this statement does not hold true as a requirement.
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Statement (ii): Companies must not have less than 100 shareholders.
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This statement is correct. A minimum number of shareholders is often a requirement for companies wishing to be listed on a securities market. This ensures that there is sufficient public interest and liquidity in the shares being traded.
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Statement (iii): No shareholder may have more than 75% of issued shared capital.
- This statement is also correct. Limiting the ownership of any single shareholder to a maximum of 75% helps to promote a more equitable distribution of ownership and prevents any one individual or entity from having too much control over the company. This is particularly important in a market setting where transparency and fairness are crucial.
Conclusion on Requirements:
- Based on the analysis:
- Statement (i) is incorrect.
- Statements (ii) and (iii) are correct.
Correct Option:
Given the analysis, the correct option is
D. ii and iii only.
Explanation of Incorrect Options:
- Option A (i and ii only): This option includes statement (i), which is incorrect. Therefore, it cannot be the right choice.
- Option B (i and iii only): This option also includes statement (i), which is incorrect. Thus, it is not valid.
- Option C (i, ii, and iii only): This option includes statement (i), which is incorrect. Therefore, it cannot be the correct answer.
Summary of Key Points:
- The second-tier securities market does not require companies to be private limited liability companies.
- A minimum of 100 shareholders is necessary for admission to ensure market liquidity.
- No single shareholder can own more than 75% of the issued share capital to maintain fair ownership distribution.
Revision Summary:
- The second-tier securities market requires a minimum of 100 shareholders.
- No shareholder can own more than 75% of the issued share capital.
- Companies do not need to be registered as private limited liability companies to be admitted.
- Understanding the requirements for market admission is crucial for compliance and strategic planning.