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:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (B), (A), (C), (D), (E)
Shares are issued in the order in which money is invited and collected:
(B) Issue of prospectus — the public is first invited to subscribe.
(A) Receipt of Applications — investors apply with application money.
(C) Allotment of Shares — made once minimum subscription is received.
(D) Making call money due — the remaining amount is called after allotment.
(E) Receiving Call money — the call is collected last.
NCERT (2026-27 edition):
NCERT (2026-27 edition): |
