Application money example sentences

When the application for some shares are rejected outrightly; and pro-rata allotment is made to the remaining applicants, the money on rejected applications is fully refunded and the excess application money received from applicants to whom prorata allotment has been made is adjusted towrds the amount due on the allotment of shares allotted.If the company fails to receive the same within the said period, the company cannot proceed for the allotment of shares and application money should be returned within 130 days of the date of issue of prospectus.When prospectus is issued to the public, prospective investors intending to subscribe the share capital of the company would make an application along with the application money and deposit the same with a scheduled bank as specified in the prospectus.First Alternative : When the directors decide to fully accept some applications and totally reject the others, the application money received from rejected applications is fully refunded.When the directors opt to make a proportionate allotment to all the applicants (called 'pro-rata' allotment), the excess application money received is normally adjusted towards the amount due on allotment.However, premium is generally called with the amount due on allotment, sometimes with the application money and rarely with the call money.In case, however, the excess application money received is more than the amount due on allotment of shares, such excess amount may either be refunded or credited to calls in advance.The first instalment is collected along with application and is thus, known as application money, the second on allotment (termed as allotment money), and the remaining instalment are termed as first call, second call and so on.The directors totally rejected the applications for 5,000 shares which are in excess of the required number and refunded their application money in full.