Question

What the director can do in the case of pro-rata allotment for the excess amount received is more than the amount due on allotment of shares?

पर्याय

• Refunded

• Credited to calls in advance

• Both Refunded and Credited to calls in advance

• None of the above

Answer 1

Both Refunded and Credited to calls in advance.

Explanation:

When the board of directors decides to make a proportionate allotment to all applicants (known as "pro-rata" allotment), the surplus application money is usually applied to the sum owing on allotment. If the surplus application money received is greater than the amount due on share allotment, the excess amount may be reimbursed or credited to calls in advance.