When is an irregular allotment? What are the provisions relating to it?

When the allotment of shares is made in contravention of the provision of the act then the allotment is termed as irregular. An allotment will be considered irregular in the following cases:-

(i)                   Where minimum subscription is not received

(ii)                 Where a copy of the prospectus has not been filed with the Registrar of Companies.

(iii)    Where a copy of the statement in lieu of prospectus has not been delivered to the Registrar of Companies at least 3 days before the allotment.

(iv)   Where application money has not been received, kept in a scheduled bank.

(v)     Where subscription list is opened before the beginning of the 5^th day from the date of issue of prospectus.

(vi)   Where application money to a minimum of 5% of the nominal value has not been received.

(vii)  Where the shares are not listed on a recognised stock exchange or have been refused listing within 10 weeks.