On receipt of 85% of the minimum subscription stated in the prospectus, Little Stars Ltd. allotted 200 shares to Ranjit and the money was deposited in a scheduled bank. Later on, it was revealed that 40% of the amount wi
CS Executive · Company Law · PYQS · December 2014
On receipt of 85% of the minimum subscription stated in the prospectus, Little Stars Ltd. allotted 200 shares to Ranjit and the money was deposited in a scheduled bank. Later on, it was revealed that 40% of the amount withdrawn was for acquisition of fixed assets for the company. Ranjit, knowing these facts, refused to accept the allotment contending that the allotment was irregular under the provisions of the Companies Act, 2013. As an expert on company law advise Ranjit.
Topics: Prospectus and Allotment of Securities
Related Questions in this Topic
- Lakshay bought the shares of Blue Ladder Ltd in the public offer relying on claims made in the prospectus which was expl...
- P Ltd. intends to raise share capital by issuing equity shares in different stages over a certain period of time. Howeve...
- Distinguish between Deemed prospectus Vs. Shelf prospectus.
- Write notes on the following: Red-herring prospectus.
- Shortcut Ltd. has allotted shares to investors of the company without filing prospectus with the Registrar of Companies,...