Question

State with the reasons whether the following statements are True or False:
Letter of Allotment need not be preserved.

• A. True
• B. False

Answer 1

The correct option is B False

(i) A letter of allotment means a letter from the company informing to the application of shares that a certain number of shares have been allotted to him.
(ii) It is also termed as the letter communicating the decision of approval of the allotment of shares.
(iii) So these letters of allotment have to be preserved by the allottees as the share certificates are issued by the company in exchange of these letters.