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Question
Explain the following term/concept.
Allotment of shares
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Solution
(a) Allotment of shares means the company allots (to give) shares to the general public. Allotment means the distribution of shares among the applicants. When a public company wants to issue the shares to the general public, it has to issue prospectus to invite the general public to subscribe to its shares.
(b) In response to it, the general public may apply for shares of the company, they are known as 'Share Applicants'. The Board of Directors takes the decision regarding the allotment of shares by passing a resolution.
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RELATED QUESTIONS
Attempt the following :
What is letter of allotment of shares? What are its contents?
Select the correct answer from the options given below and rewrite the statement.
The ______ have the power to allot shares.
Letter of ______ is sent to applicants who have been given shares by the company.
Write a word or a term or a phrase which can substitute the following statement.
Appropriation of shares to an applicant.
State whether the following statement is true or false.
Allotment of shares must be done within one month of receipt of application money.
Complete the sentence.
Letter sent to applicants for informing them shares are allotted is called as ______
Complete the sentence.
When applications received are more than the number of shares offered, it is called as ______
Answer in one sentence.
What is the time limit for filing Return of Allotment with the Registrar on allotment of shares?
Answer in one sentence.
What is the minimum application money to be collected by company as per the Companies Act?
Arrange in proper order.
- Return of allotment
- Application form
- Minimum subscription
Study the following case/situation and express your opinion.
Silver Ltd. Company has recently come out with its public offer through FPO. Their issue was over subscribed. The Board of Directors now wants to start the allotment process. Please advise the Board on:
- Should the company set up allotment committee?
- How should the company inform the applicants to whom the company is alloting shares?
- Within what period should the company issue share certificate?
Answer in brief.
State the general principles/rules for allotment of shares.
Explain the statutory provisions for allotment of shares.
Explain briefly the procedure for allotment of shares.
Arrange in proper order:
(a) Allotment of shares
(b) Application of shares
(c) Share certificate
Find the odd one.
Find the odd one.
Find the odd one.
What is allotment of Share?
Find the odd one.
Find the odd one.
Find the odd one.
Find the odd one.
Find the odd one.
