Correct steps in the procedure of issue of shares are-

(A) Allotment of Shares
(B) Calls in Arrears
(C) Issue of Prospectus
(D) Receipt of Applications

Choose the correct answer from the options given below:

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

The correct answer is Option (1) → (C), (D), (A), (B)

• (C) Issue of Prospectus → The company first issues a prospectus to invite the public to apply for its shares.

• (D) Receipt of Applications → After the prospectus is issued, the company receives applications from interested investors.

• (A) Allotment of Shares → Once applications are received and verified, the company allots shares to the applicants.

• (B) Calls in Arrears → If any shareholder fails to pay the due amount on allotment or future calls, it is recorded as calls in arrears.