D 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).


The company cannot proceed for allotment of shares as the minimum subscription is not received which should be 90% of the shares offered for subscription (i.e., 9,00,000).

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