Letter of Allotment Letter of Regret


Letter of Allotment
Letter of Regret
1.      Meaning: -
A letter of allotment is a letter from the company to a share applicant informing him that a certain number if shares have been allotted to him.
2.      Contents: -
The contents of a letter of allotment are.
a.      The name of the share applicant.
b.      The number of shares applied for
c.      The number of shares allotted
d.      The allotment money due, if any and
e.      The last date for payment of the allotment money.
3.      Preservation:-
It should be preserved carefully because it is required to be exchanged against the final share certificate.
4.      Enclosures:-
No enclosures are sent along with it.
5.      Right: -
The allottee gets the right of membership on getting this letter
6.      Occasion: -This letter is sent to the applicant only when he is allotted certain number of shares.
.
1.      A Letter of regret from the company to a share applicant informing him that no shares have been allotted to him.

2.      The contents of a letter of regret are
a.      The name of the share applicant
b.      The number of shares applied for
c.      The statement that the applicant could not be allotted any shares
d.      The amount of application money refunded and
e.      The particulars of the refund order.


3.      It need not be preserved because it has no exchange value.


4.      This letter is sent along with a cheque (i.e. refund order) for refund of the application money.

5.      This letter does not give any right to the applicant.

6.      This letter is sent to the applicant when no shares could be allotted to him.

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