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Company Accounts – Issue of Shares — Book Keeping & Accountancy STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsBook Keeping & AccountancyCompany Accounts – Issue of Shares2 Marks
Question
Once the application money is received, directors can immediately proceed with the allotment of shares.
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Answer

This statement is False.
Directors can proceed for allotment of shares only after receiving the minimum subscription amount of the issued amount by cheque or other instrument complying with all legal requirements.

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