Class 12 SP Letter of Allotment of Shares: Format & Solved Draft (Chapter 6)
Master the official format and scoring guidelines for the Class 12 Secretarial Practice (SP) letter on the Allotment of Equity Shares tailored for the Maharashtra State Board (HSC) Commerce examination. Under Chapter 6 (Correspondence with Members), drafting a formal Share Allotment Letter to an applicant following a public subscription is a cornerstone topic in Question 7 (Letter Writing), carrying a direct weightage of 5 marks. Below, you will find the official board exam scenario, step-wise marking breakdown, statutory legal guidelines under the Companies Act, 2013, and a textbook-accurate solved model answer.
Statutory Rule (Section 39, Companies Act 2013 & SEBI Regulations): A company cannot proceed with the allotment of securities unless the minimum subscription (90% of the issue size) has been received within the prescribed statutory period. Allotment represents the formal acceptance by the company of the applicant's offer to take shares, creating a legally binding contract between the member and the company.
HSC Board Examination Question Scenario
In the HSC examination, this question is typically framed as follows:
"Draft a Letter of Allotment of Equity Shares to an applicant, informing him / her about the allotment of 100 equity shares and calling for the payment of allotment money, citing the resolution passed at the Board Meeting."
Official HSC Step-Wise Marking Breakdown (5 Marks)
Examiners evaluate secretarial correspondence based on structural completeness and factual accuracy:
| Component | Required Exam Content | Marks |
|---|---|---|
| Letterhead & Layout | Company Name, Registered Address, 21-digit CIN, Phone, Email, Website, Ref. No., and Date. | 1 Mark |
| Inside Address & Subject | Applicant Name, Address, concise Subject Line, and formal Salutation. | 1 Mark |
| Body of the Letter | Reference to application date, Board resolution, allotment schedule table, payment deadline, and banker details. | 2 Marks |
| Sign-off & Enclosure | Complimentary close ("Yours faithfully"), Secretary signature block, and Enclosure ("Encl: Allotment Slip / Challan"). | 1 Mark |
| Total Marks | Question 7 (Attempt Any 2 Letters out of 3 = 10 Marks Total) | 5 Marks |
Solved Model Answer: Letter of Allotment of Equity Shares
KIRAN TEXTILES & APPARELS LIMITED
Registered Office: 401, Nariman Bhavan, 227, Backbay Reclamation, Nariman Point, Mumbai - 400021.
CIN: L17120MH2008PLC185694
Phone: 022 - 6610 8844
Email: secretarial@kirantextiles.com
Website: www.kirantextiles.com
Ref. No.: KTAL/SH-ALLOT/2026-27/45
Date: 18th November 2026
To,
Mr. Ramesh S. Patil,
104, Sai Sadan, Tilak Road,
Ghatkopar (East), Mumbai - 400077.
Subject: Allotment of Equity Shares.
Dear Sir,
In response to your Application No. EA-88901 dated 15th October 2026, I am pleased to inform you that the Board of Directors, at their meeting held on 10th November 2026, has approved the allotment of 100 Equity Shares of face value ₹ 10/- each to you.
The particulars of the shares allotted and the amount payable on allotment are set out in the schedule below:
| Folio No. | No. of Shares Applied | No. of Shares Allotted | Distinctive Numbers (From - To) | Amount Received on Application @ ₹ 2.50 (₹) | Amount Due on Allotment @ ₹ 2.50 (₹) |
|---|---|---|---|---|---|
| E-4052 | 100 | 100 | 2001 - 2100 | 250.00 | 250.00 |
You are hereby requested to pay the allotment money of ₹ 250/- (Rupees Two Hundred and Fifty Only) on or before 5th December 2026 to the company's bankers, Bank of Maharashtra, Nariman Point Branch, Mumbai, along with the enclosed Allotment Slip / Pay-in-Slip.
Payment may also be made electronically through NEFT / RTGS using the virtual account details indicated on the allotment slip. Please note that failure to pay the allotment money by the due date will make the shares liable to forfeiture in terms of the Articles of Association of the company.
The Share Certificate will be dispatched to you within two months from the date of allotment in exchange for the receipted Allotment Slip.
Thanking you.
Yours faithfully,
For Kiran Textiles & Apparels Limited
(Signature)
Mr. Nitin K. Joshi
Company Secretary
Encl: Allotment Slip No. 4052
Examiner's Secret: 3 Critical Points for Scoring Full Marks
- Consistent Arithmetic: Make sure the application money per share and allotment money per share align perfectly with the number of shares allotted ($100 \times ₹ 2.50 = ₹ 250$).
- Clear Due Date for Payment: Always provide a realistic future payment deadline (usually 15 to 21 days from the date of the letter) and specify the authorized banker's name and branch.
- Mandatory Enclosure: Always mention
Encl: Allotment Slip No. ...at the bottom-left margin, as the shareholder must present this slip while depositing the allotment money.
Frequently Asked Questions (HSC Board Exam FAQs)
1. What is the statutory minimum subscription required before allotment?
Under SEBI regulations, a public company cannot proceed to allot shares unless it receives at least 90% of the total issued amount as minimum subscription within the specified offer period.
2. What happens if an applicant fails to pay the allotment money?
If the allottee fails to remit the allotment money within the stipulated period, the company issues a reminder/call notice, and if non-payment persists, the Board of Directors has the statutory power to forfeit the shares as per the Articles of Association.
3. What is an Allotment Slip?
An Allotment Slip is a detachable counterfoil or challan attached to the Allotment Letter. The applicant submits it along with the allotment money to the company's designated bank, and the receipted slip is returned as proof of payment.