An allotment of shares is when a company issues new shares in exchange for cash or otherwise. Such allotment of new shares increases the company’s share capital. Private companies can allot new shares only after filing the “Return of Allotment of Shares” transaction via BizFile+.
Allotment generally means the distribution of equity, particularly shares granted to a participating underwriting firm during an initial public offering (IPO). There are several types of allotment that arise when new shares are issued and allocated to either new or existing shareholders.
Procedure for allotment of shares are as follows:
- Appointment of Allotment Committee: …
- Hold Board Meeting to Decide the Basis of Allotment: …
- Pass Board Resolution for Allotment: …
- Collection of Allotment Money: …
- Arrangement Relating to Letters of Renunciation: …
- Arrangement Relating to Splitting of Allotment Letters:
Allotment means accepting the applications of the applicants and distributing the shares to them. After the acceptance, the company allots the shares via share certificates.
Allotment of Shares : Allotment of shares means acceptance of share applied. Allotment letters are issued to the shareholders. The name and address of the shareholders submitted to the Registrar.
How do allotments work?
With an allotment, half of the allotted amount is deducted from your mid-month pay, and that amount remains in the system until the other half is deducted from your end-of-month pay. At that time, the entire amount is submitted to the designated recipient.
What is the percentage of allotment?
The “allotment percentage” for any State shall be 100 percent less the State percentage; and the State percentage shall be the percentage which bears the same ratio to 50 percent as the per capita income of such State bears to the per capita income of the United States; except that (1) the allotment percentage shall in …
Shares are allotted by the directors
As with all other decisions of the directors, minutes must be taken and kept for ten years.
Share issue is the process by which companies pass on new shares to shareholders, who may themselves be new or existing shareholders. … With a share allotment, the shares are created and issued by the company to the people who become the company’s shareholders.
Registration of an allotment is important. The new shareholder(s) will not hold the allotted shares or be a member of the company, until the registration process is complete. any shareholder resolutions (passed at a meeting or using the written resolution) required for the allotment.
When the shares are offered, potential shareholders (applicants) apply to buy them on an application form with a cheque to cover the cost of the shares. … When the shares are allocated to the applicants they become the allottees, i.e. the new shareholders; this is known as the process of allotment.
If a shareholder fails to pay the due amount of allotment or any call on shares issued by the company, the Board of directors may decide to cancel his/her membership of the company. … Thus, when a shareholder is deprived of his/her membership due to non payment of calls, it is known as forfeiture of shares.