Yamuna Ltd., invited general public to subscribe for its public issue of ₹ 10 crore (10 lakh shares of ₹ 100 each ) through issue of prospectus . However , the company received applications for 8 lakh shares .
Can the company proceed with allotment of shares ? Give reasons in support of your answer .

Explanation

No , Yamuna Ltd., cannot proceed with allotment of shares as minimum subscription has not been received .
In order to prevent companies from commencing business with inadequate resources , it is provided that a company must receive the amount of minimum subscription in cash within 120 days from the date of issue .
Minimum subscription is 90 per cent of the issued amount ( according to SEBI guidelines) . Otherwise , the allotment cannot be made and the application money received must be returned to the applicants within the next 10 days (i.e., 130 days from the date of issue ) .