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?
- Yes, the company should set up allotment committee. The allotment committee will decide the basis of allotment and submit a report to the board.
- The company should inform the applications to whom it is allotting shares by issuing letter of allotment or allotment advice.
- The company should issue share certificates within two months from the date of allotment of shares.