Practicing Success
What is the significance of receiving the minimum subscription for the company? |
It guarantees allotment of shares to all applicants It allows the company to proceed with share allotment It ensures no legal formalities are required It exempts the company from sending letters of regret |
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, proceeding with share allotment might not be in the best interest of the company or its investors, as it could indicate a lack of sufficient market demand or interest in the company's shares. |