Question

State with the reasons whether the following statements are True or False:
Regret letter is often sent to the members.

• A. True
• B. False

Answer 1

The correct option is A True

(i) A regret is a letter which informs an applicant that the company is unable to allot share.
(ii) Every applicant who applies for shares of the company has to pay some amount of money the time of application of shares.
(iii) In case the applicant is not alloted shares by the company, it is the duty of the company refund the amount already paid.
(iv) This refund order or cheques must be sent along with the regret letter wherein the regret left clearly indicates the company's inability to allot a certain number of shares to an applicant.
(v) Hence, reglet letter is sent to those applicants whom the company does not allot any share.