There are instances when applications for more shares of a company are received than the number offered to the public for subscription. In such a condition, what are the alternatives available to the directors to deal with the situation?

(A) They can accept some applications in full and totally reject the others.

(B) They can make a pro-rata allotment to all.

(C) They can adopt a combination-accept some applications in full, pro-rata allotment to some and totally reject the remaining.

(D) They can totally reject all applications and come up with fresh issue.

Choose the correct answer from the options given below:

(A), (B) and (C) only

Correct answer: Option (3) → (A), (B) and (C) only

Concept: Alternatives available to the directors on over-subscription of shares, per Accounting for Share Capital.

NCERT gives exactly three alternatives: (A) accept some applications in full and reject the others, (B) make a pro-rata allotment to all, and (C) adopt a combination of the two. Option (D) – rejecting all applications and coming up with a fresh issue – is not among them. Hence (A), (B) and (C) only, Option (3).