the lIame of applicant in the register of members is not sufficient [Readheshan r:”, Prhh Dava A.!.R 1936]. The allotment nlllst be communicated to the
persons making the application so that it is legally complete. Posting of allotment letter shall be taken as a valid communication even if the letter is lost in
transit [Household Fire Insurance Co. 1,’. Grant].
4. Absolute and Unconditional. The allotment must be absolute and unconditional and therefore shares must be allotted on terms and conditions ftated in
the application form. Any variation must be communicated and assented to by the allottee.
5. R(“ocation. An application for the allotment of shares C’1ll be withdrawn at any time before the offer is accepted. On the other hand, allotment may
also be withdrawn by the company l11Y time before its communication is complete as against the company (i.e.. before the letter of allotment is received
by the applicant). .
It is worth noting here that these general provisions governing the allotment of shares and debentures arc applicable to both public as well as private
companies.
Ef(ect of non-comldiance of General Pl’Ovisions. Ifthe above general
provisions are not complied with, the allotment is null and void.
The Companies Act dues not prescribe any restrictions as to the allotment of shares and debentures in the case of private companies. The Act however,
lays down certain restrictions regarding the allotment of shares and debentures by public companies. These restrictions can be
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