The correct answer is Option (2) → (B), (C), (D), (A)
-
(B) Share Application: This is the first step. The company invites the public to subscribe, and prospective shareholders apply for shares and submit the initial application money.
-
(C) Share Allotment: After the application period closes, the company allocates (allots) shares to successful applicants and demands the allotment money. This is the second stage of payment.
-
(D) Unpaid Call (Call-in-Arrears): This represents a payment stage after allotment (First Call, Second Call, etc.). If a shareholder fails to pay the money demanded on any of these calls, it becomes an unpaid call.
-
(A) Share Forfeiture: This is the final step and a consequence of the failure to pay the allotment money or any subsequent call (D). If the shareholder fails to pay the money even after repeated reminders, the company cancels (forfeits) their shares.
|
