A company invites applications for issuing 10000 equity shares and the public applied for 8000 shares. Can the company proceed for the allotment of shares?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- No.
A company can not proceed for the allotment of shares.
The minimum subscription is not received as it should be 90% (10,000 X90/100 = 9,000 shares). So, the company can not go for allotment and has to return the money to applicants.