SVKM’S

PRAVIN GANDHI COLLEGE OF LAW

Share Allotment Latter

SUBMITTED BY: SRUSHTI VAIDYA

ROLL NO: B053

CLASS: 4TH YEAR

COURSE: B.L.S. LL.B

SUBMITTED TO: ADV. PANKTI GANDHI

FACULTY INCHARGE (COMPANY LAW)

SHARE ALLOTMENT LATTER

STAR INDUSTRIES LIMITED

50/A, Kasarwadi, Pimpri-Pune-411018
Tele No. 24371235 http://www.starind.in
Email- starind@gmail.com

Fax: 24371235
Ref.: D35/2012 Date: 18th June, 2012

To,
Mr. Bhave Singh P. Chavan
A/24, Sunderbun,
Bhandarkar road, Khar, Mumbai- 53

Sub: Public issue of 1,00,000 equity shares of Rs. 10/- each at par
Dear sir,

With reference to your share application no. 555341 dated 25th May, 2012 for 100
equity shares of Rs. 10 each, we are pleased to inform you that you have been allotted 100
equity shares. The decision is taken by board of directors by passing resolution No. 52 at
the board meeting, held on 15th June, 2012. The details of allotment of equity shares are
given below:
1 2 3 4 5
No. of shares No. of shares Distinctive Amount Amount due on
applied allotted numbers of received as allotment
shares application
money
100 100 2801 to 2900 Rs. 250 Rs.250

You are hereby requested to pay the aforesaid amount due on allotment mentioned in
column 5 to our company’s bankers viz Bank of India at any of its branches. Please make it
convenient to pay the allotment money on before 6 July, 2012. If you fail to pay allotment
latter within stipulated period, interest will be charged @ 5% p.a. duly signed and executed
share certificate shall be exchanged against this latter of allotment and allotment receipt.

Thanking you.
Yours faithfully,
For Star Industries Ltd.
Seal of Sd/-
the Secretary
company
 Allotment Receipt

Star Industries Ltd.

50/A, Kasarwadi, Pimpri-Pune-411018
Tele No. 24371235 http://www.starind.in

Ref.: D35/2012

Received from Shri. Bhave Singh P. Chavan a sum of Rs. Two Hundred and Fifty only
as allotment money on One Hundred equity shares of Rs. 1o each.

Seal of Revenue
the Stamp only if
Bank Amt. is more For Bank of India
then Rs. 5000 Signature
Cashier

Allotment slip (to be forwarded to company)

Ref.: D35/2012

Received from Shri. Bhave Singh P. Chavan a sum of 250 (Two Hundred Fifty) on
behalf of Star Industries Ltd., as allotment money on one hundred equity shares numbered
2801 to 2900.

Seal of
the
company
For Bank of India
Signature
Cashier
1. Why does one require to enter into share allotment agreement:

Allotment of shares refers to the process of creating and issuing new shares by the company to
the new or existing shareholders in exchange for cash or otherwise to raise more capital.
Typically, a company issues new shares to attract new investors and to make them a partner in
the business. Private companies can allot new shares only after filling the "Return of Allotment
of Shares". While public companies are free to allot new shares anytime but they also have to
fill the "Return of Allotment of Shares" transaction within 14 days of allotment. After the
allotment process is completed, successful applicants receive an allotment letter.

This letter confirms the number of shares allotted to them, the price per share, and any
additional instructions regarding payment or share certificates.

This letter informs a share applicant about allotment of shares. Intimation about allotment
money due from allottee is also given in the letter. Receipt with perforation is attached with
this letter. Latter of allotment has to be preserved by the allottee as the share certificate is issued
by the company in exchange of this latter.

2. Important clauses:

A share allotment letter is an important legal document that confirms the allotment of shares to
an applicant in a company. While the specific clauses and content of a share allotment letter
may vary depending on local laws, regulations, and the company's specific circumstances, there
are several key clauses that are typically important to include in such a letter to ensure clarity
and legal compliance. Here are some essential clauses to consider:

• Allotment Confirmation: This clause should explicitly state that the applicant has been
allotted a specific number of shares in the company.
• Details of Allotted Shares: Include the number of shares allotted, the face value or
issue price per share, and any relevant information about the class or type of shares
being allotted.
• Payment Instructions: Clearly specify how the payment for the allotted shares should
be made, including the due date for payment, accepted payment methods, and any
account details or payment references.
• Share Certificate: If the company issues physical share certificates, describe when and
how the share certificate will be issued and delivered to the applicant.
• Listing Information: If applicable, mention when the company's shares will be listed
on a stock exchange, allowing trading to commence.
• Rights and Responsibilities: Outline the rights and responsibilities of the shareholder,
including voting rights, dividend entitlements, and any other pertinent rights.
• Transfer Restrictions: If there are any restrictions on transferring or selling the allotted
shares, clearly specify these restrictions.
• Contact Information: Provide contact details for the company's investor relations or
customer service department in case the recipient has questions or requires assistance.
• Regulatory Compliance: Ensure that the letter includes statements indicating that the
allotment is made in compliance with all applicable laws, regulations, and the
company's bylaws.
• Signature and Date: The letter should be signed by an authorized representative of the
company, and the date of the allotment should be clearly stated.
• Applicant's Acceptance: Include a section where the applicant acknowledges and
accepts the allotment, typically by signing and dating the letter.
• Governing Law and Jurisdiction: Specify the governing law and jurisdiction under
which the letter is subject, which is often the legal jurisdiction where the company is
incorporated

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