The important steps in the procedure of share issue are :(A) The company issues the prospectus to the public.(B) The company has to get minimum subscription within 120 days from the date of the issue of the prospectus.(C) The prospective investors intending to subscribe the share capital of the company would make an application along with the application money.(D) Letters of allotment are sent to those whom the shares have been alloted, and letters of regret to those to whom no allotment has been made.Choose the correct sequence of steps from the options given below:
- A(A), (B), (C), (D)
- B(A), (C), (B), (D)
- C(B), (A), (D), (C)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
The process of issuing public shares follows a logical sequence:First, the company releases a prospectus to invite the general public to buy shares (A).Next, interested public buyers apply by filing an application and paying the application money (C).The company must check that it has met its minimum subscription goals within the legally required timeline (B).Once minimum subscription is verified, the company formally distributes shares by issuing letters of allotment to approved buyers and sending letters of regret to unsuccessful applicants (D).Thus, the correct operational sequence is (A), (C), (B), (D).