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State the steps other than rejecting applications that a company can take in case of over-subscription.

  • Post category:Accountancy
  • Reading time:1 mins read

SOLUTION

(i) To make pro-rata allotment to the remaining applicants; or (ii) Accepting some applications in full and alloting the remaining on pro-rata basis.



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Previous PostDistinguish between ‘Over-Subscription’ and ‘Under-Subscription’.
Next PostD Ltd. invited applications for issuing 10,00,000 equity shares of Rs. 10 each. The public applied for 8,55,000 shares. Can the company proceed for the allotment of shares? Give reason in support of your answer. (C.B.S.E. 2014. Outside Delhi).

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