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Question: Maple Ltd was registered on 1 March 2017. Directors decided to issue 500?000 ordinary shares on 31 March 2017, payable in full on application at an issue price of $2. The company received applications for 560?000 shares, sent letters of regret to applicants for 10?000 shares and the remaining applicants received partial allotments by issue of 10 shares for every 11 shares applied for, making the total allotment 500?000 shares. Legal costs of issuing the shares, $12?000, were paid.
Why do we need to refunds of excess application money to successful application? The question just mentions that the allotments by issue of 10 shares for every 11 shares applied for.
The partners of JPG Partnership want to change the form of entity from a partnership to a corporation. The corporation can be formed in several ways: The partnership can distribute the assets to the partners who then contribute the assets to the c..
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