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D Ltd. invited applications for issuing ...

D Ltd. invited applications for issuing 10,00,000 equity shares shares of Rs. 10 each. The public applied for 8,55,000 shares. Can the company proceed for the allotment of shares ? Given reason in support of your answer.

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The company cannot proceed for allotment of shares as the minimum subscription is not received which should be 90 % of the shares offered for subscription (i.e. 9,00,000).
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