Consider the following as steps related to issue of shares, and arrange them in correct order.

A. Reissue of shares immediately after forfeiture

B. Allotment Made

C. First and Final call, called up

D. Arrears on Allotment on specific shares

E. Forfeiture of shares immediately after allotment

Choose the correct answer from the options given below.

B, D, E, A, C

The correct answer is option (3) : B, D, E, A, C.

B. Allotment Made- 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. Arrears on Allotment on specific shares- If shareholders fail to pay the allotment amount, the outstanding or unpaid amount becomes arrears.

E. Forfeiture of shares immediately after allotment- If the arrears are not paid within the stipulated time, the company may decide to forfeit the shares of the defaulting shareholders. The company typically issues a notice to shareholders to inform them about payment otherwise there shares will be forfeited. Forfeiture involves canceling the shares and removing the shareholder's rights.

A. Reissue of shares immediately after forfeiture- After the forfeiture of shares, the company has the option to reissue these forfeited shares to new shareholders. This process helps the company recover the value of the unpaid calls.

C. First and Final call, called up- After Allotment, the first and final call is made to shareholders to pay the call amount.