Question

State with the reasons whether the following statements are True or False:
Regret letter is by accompanied by a refund order.

• A. True
• B. False

Answer 1

The correct option is A True

(i) A reglet letter 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 to cheque 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) Therefore, a refund order must be enclosed with a regret letter.