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D Ltd. Invited Applications for Issuing 10,00,000 Equity Shares of Rs 10 Each. the Public Applied for 8,55,000 Shares. Can the Company Proceed for the Allotment of Shares? Give Reason in Support of Your Answer - Accountancy

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Question

D Ltd. invited applications for issuing 10,00,000 equity shares of Rs 10 each. The public applied for 8,55,000 shares. Can the company proceed for the allotment of shares? Give reason in support of your answer

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Solution

The subscribed shares are less than the minimum subscription required (90%). Thus, D Ltd. cannot proceed with the allotment of shares.

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2013-2014 (March) All India Set 1
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