shares are unlisted. Some of the common basis of allotment

(i) by lottery.

(ii) on pro-rata basis (Le., by allotting shares to each applicant in proportion to the number of shares applied for) or

(iii) by preferential treatment to small applicants.

3. Post-Allotmcnt Stcps. After the shares are allotted and allotment letters arc issued. the next step is to collect allotment money. Share certificates

will then be prepared from the Allotment List, which shall be duly sealed and signed at least by two directors. These share certificates are issued to the

members against allotment letters arid banker’s receipts within three months of allotment (Sec. ] B). A Register of Members is prepared. In this way, the

:illotment procedure is completed. .

WhItt is a Return of Allotment ‘! What lire its contents. . Ans. According to Section 75 of the Companies Act, 1956. a company

hnving a share capital making any allotment of its shares, has to file with the Registrar of Companies a statement called “Return of Allotment”

within 30 days of allotment. It must contain the following particulars and nmst be accompanied by the documents specified below:

(i) Particulars about the shares allotted for cash, the names, addresses and occupations of the allottees, and the amount paid or due and payable on each

share.