It is compulsory that the company must receive applications for some minimum number of shares. This is known as a .
A
minimum subscription
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B
maximum subscription
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C
over subscription
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D
under subscription
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Solution
The correct option is A minimum subscription It is compulsory that the company must receive applications for some minimum number of shares. It is known as a minimum subscription. A public limited company cannot make allotment of shares unless a minimum subscription is received.