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Application of Shares

State the fol...

Question

State the following statement is True or False:
A letter sent to the applicant to whom shares are not allotted is known as Letter of Allotment.

A

True

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B

False

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Solution

The correct option is A True
A letter sent to the applicant to whom shares are not allotted is known as Letter of Allotment- this is a true statement. The letter of allotment is mainly useful to the buyer. It contains the details regarding the purchase or sell of the shares.
Hence the statement is true.

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Similar questions

Which letters are sent to the shareholders to whom shares have been allotted ?

The applicants who are allotted shares will be sent ___________ letter.

Q. Write a word/term/phare which can substitute the following statements:
A letter informing the applicant that the shares have not been allotted to him.

Q. Sony Media Ltd.issued 50,000 shares of ₹ 10 each payable ₹ 3 on application , ₹ 4 on allotment and balance on first and final call . Applications were received for 1,00,000 shares and allotment was made as follows :
(i) Applicants for 60,000 shares were allotted 30,000 shares,
(ii) Applicants for 40,000 shares were allotted 20,000 shares,
Anupam to whom 1,000 shares were allotted from category
(i) failed to pay the allotment money.
Pass journal entries up to allotment .

Q. A company invited applications for certain number of equity shares and received applications for more number of shares along with the applications money. Which of the following alternative can be followed?
I. Refund the excess applications.
II. Make pro-rata allotment to all the applicants, and no refund of excess application money.
III. Not to allot any shares to some applicants, full allotment to some of the applications and pro-rata allotment to the rest of the applicants.
IV. Not to allot any shares to some applicants and make pro-rata allotment to other applicants.

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