The allotment of shares implies a contract between the company and the
applicants who now become the allottees and assume the status of.....................
Answer & explanation
Correct answer: option 3
When minimum subscription has been received and certain legal
formalities on the allotment of shares have been duly compiled with, the directors
of the company proceed to make the allotment of shares.
The allotment of shares implies a contract between the company and the
applicants who now become the allottees and assume the status of shareholders
or members.