Advertisements
Advertisements
Question
Guru Ltd. invited applications for issuing 5,00,000 equity shares of Rs 10 each at a premium of Rs 5 per share. Because of favourable market conditions, the issue was over-subscribed and applications for 15,00,000 shares were received
Suggest the alternatives available to the Board of Directors for the allotment of shares.
Advertisements
Solution
The following three alternatives to the Board of Directors are:
a. Reject the excess application of 10,00,000 shares.
b. Allot shares to all the share applicants on pro-rata basis.
c. Reject few applications and allot shares on the proportionate basis to the remaining applicants.
shaalaa.com
Is there an error in this question or solution?
