Steps for Forfeiture of Shares-(A) Issue of Prospectus(B) Shares Forfeiture(C) Receipt of Application(D) Allotment of SharesChoose the correct answer from the options given below:
- A(A), (C), (D), (B)
- B(A), (C), (B), (D)
- C(B), (A), (D), (C)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
The chronological lifecycle order for share issuance up through a potential default and forfeiture is:First (A): The company issues a prospectus inviting public interest.Second (C): The company receives share subscription applications along with application fees.Third (D): The board processes and allots shares to applicants.Fourth (B): If an investor defaults on subsequent call requests, the company cancels the shares via forfeiture.This gives the sequence: (A), (C), (D), (B).