What is the significance of receiving the minimum subscription for the company?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- It allows the company to proceed with share allotment.
The significance of receiving the minimum subscription is that it allows the company to move forward with the process of share allotment.
Share allotment is the process through which the company formally assigns and distributes shares to the applicants who have expressed interest in subscribing to the company's shares. Without meeting the minimum subscription requirement of 90%, a company can't proceed with share allotment.