Find the correct sequence of procedure of issue of shares:

(A) Receipt of Applications
(B) Issue of prospectus
(C) Allotment of Shares
(D) Making call money due
(E) Receiving Call money

Choose the correct answer from the options given below:

(B), (A), (C), (D), (E)

The correct answer is option 2- (B), (A), (C), (D), (E).

The steps in the procedure of share issue:

* B. Issue of Prospectus: The company issues a prospectus to the public, which is a document that provides information about the company and the shares it is issuing. The prospectus is an invitation to the public to subscribe to the shares.

* A. Receipt of Applications: Prospective investors who wish to purchase shares in the company submit applications along with the application money. The application money is deposited into a scheduled bank as specified in the prospectus. The company must receive the minimum subscription amount within 120 days of issuing the prospectus. If the company does not receive the minimum subscription amount within this time period, it cannot proceed with the allotment of shares and must return the application money to investors within 130 days of issuing the prospectus.

* C. Allotment of Shares: If the company receives the minimum subscription amount, it may proceed with the allotment of shares after fulfilling certain legal formalities. The company sends letters of allotment to investors who have been allocated shares and letters of regret to investors who have not been allocated shares. Once shares have been allotted, a valid contract is formed between the company and the investors, who are now shareholders of the company. After allotment of shares, share application money is transferred to share capital A/c.

* D. Making Calls: Calls are important for making shares fully paid-up and for collecting the full amount of shares from shareholders. After shares are allotted, a company can make calls. If shares are not fully called up by the time allotment is complete, the directors can ask for the remaining amount on shares whenever they decide to do so. It is also possible that the timing of call payments by shareholders is determined at the time of share issue and is given in the prospectus.

* (E) Receiving Call money- The company receives the call money from shareholders. Call money refers to the amount of money that shareholders are required to pay when the company calls for it, after the initial application and allotment of shares have been made. This process typically happens after the allotment of shares and is part of the procedure where shareholders are required to pay the remaining balance of the share price.