question_answer

Sun & Moon Ltd. invited applications for 25,000 equity shares of Rs. 10 each and received 30,000 applications along with the application money of Rs. 4 per share. Which of the following alternatives can be followed?

(i) Refund the excess application money and full allotment to rest of the applicants.

(ii) Not to allot any share to some applicants, full allotment to some of the applicants and pro-rata allotment to the rest of the applicants.

(iii) Not to allot any share to some applicants and make pro- rata allotment to other applicants.

(iv) Make pro-rata allotment to all the applicants and adjust the excess money received towards call money.

A) Only (i)              

B) (i) and (iii)

C) Only (ii)             

D) All of these