Explain the procedure of allotment of shares.

Ans. The term allotment is not defined in the companies act. Allotment is the acceptance by the company of the offer made by the public in the form of application of shares.Allotment results in the binding contract between the applicant and the company.

प्रश्न- शेयरों के आवंटन की प्रक्रिया का वर्णन कीजिए।

उत्तर:। आवंटन शब्द कंपनियों के अधिनियम में परिभाषित नहीं किया गया है। आबंटन शेयरों के आवेदन के रूप में जनता द्वारा किए गए प्रस्ताव की कंपनी द्वारा स्वीकृति है। आवेदक और कंपनी के बीच बाध्यकारी अनुबंध में आवंटन परिणाम।

Palmer defines, “allotment-means appropriation to an applicant by a resolution of the directors, of a certain number of shares in response to an application”. Allotment is an appropriation of the board of directors of a company of a certain number of shares to an applicant in response to his application.

पामर परिभाषित करता है, “आवंटन का मतलब है कि किसी आवेदन के जवाब में कुछ निश्चित शेयरों के निदेशकों के एक प्रस्ताव द्वारा आवेदक को विनियमन”। आबंटन अपने आवेदन के जवाब में आवेदक को कुछ निश्चित शेयरों की एक कंपनी के निदेशक मंडल का विनियमन है।

Procedure of Allotment:

When all the applications are received by the company from bankers, then the application list is prepared. The directors will see that all the legal rules regarding allotment are followed. Next step is the allotment of shares. If the issue has been just fully subscribed, then the directors can allot to each applicant the number of shares asked for. The real problem arises in case of over subscription. In such case, the applicants will get lesser number of shares than applied for. Over subscription arises when the number of shares applied is greater than the number of shares available for allotment. Then in such case partial allotment can be done by allotting less number of shares than applied by the applicants.

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