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:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (C), (D), (A), (B)
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(C) Issue of Prospectus → The company first issues a prospectus to invite the public to apply for its shares.
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(D) Receipt of Applications → After the prospectus is issued, the company receives applications from interested investors.
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(A) Allotment of Shares → Once applications are received and verified, the company allots shares to the applicants.
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(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.