Question - Zazi Ltd was registered on 1 July 2016 with an authorised share capital consisting of 80 000 ordinary shares.
The company offered 10 000 ordinary shares at R2,00 per share to the incorporators of the company, all of which were taken up and paid for on 1 September 2016. On 1 October 2016, Zazi Ltd shares traded at 25% more than the previously recorded price and the company decided to offer ordinary shares to the general public. This public offering was underwritten by Rock Merchant Bank at a commission of 2% which had to be settled by 30 November 2016. The company's accounting records indicate an expense amounting to R2 500 as underwriter's commission. On 1 December 2016, Zazi Ltd received a cheque amounting to R30 000 from Rock Merchant Bank as a final settlement.
What is the correct number of shares subscribed for by the general public?
A. 37 000 shares
B. 47 000 shares
C. 50 000 shares
D. 70 000 shares