When the directors opt to make a proportionate (pro-rata) allotment to all applicants, the excess application money received is normally adjusted towards the amount due on allotment. In case the excess application money received is more than the amount due on allotment of shares, such surplus amount may either be:
- AAdjusted towards the amount due on the allotment of shares allotted.
- BRefunded or credited to calls in advance.
- CRefunded money in full.
- DRefunded or credited to Calls in Arrears.
Solution & Step-by-step Explanation
If any excess application money remains after fully adjusting the amount due on allotment, it can either be refunded back to the applicants or carried forward and credited to 'Calls in Advance' to be utilized against subsequent calls (if authorized by the Articles of Association).