Allotment Letter: It is a letter that confirms the number of shares allotted to an individual for a new issue of shares or an existing stockholder following the rights issue. It is presented as a temporary certificate of share ownership on receipt of share payment. The shareholder may renounce it to another shareholder or sell his/her rights. It is renounceable up to a particular date. If accepted by the shareholder then it becomes evidence of the shareholding.
The allotment letter may be traded on the stock exchange like the security. A shareholder can know about his/her allotment of shares through this letter. This letter also intimates about the due of allotment money from the shareholder. After receiving the letter of allotment, an individual must sign it and return a copy of it to the corporation registrar. Read the article below to know more about writing an Allotment Letter, Room Allotment Letter Format, Request Letter For Land Allotment, Land Allotment Request Letter Format, Allotment Letter Format For Plot.
Get Other Types of Letter Writing like Formal, Informal and Different Types of Letter Writing Samples.
How To Write an Application for Land Allotment Letter?
Refer to the following writing tips for an Allotment Letter.
- It must be written like an official letter. It must be duly dated, stamped, and signed by the authorized person.
- It must include the number of shares allotted and the amount payable on the allotment.
- Make sure to write it grammatically correct.
- It should include the due date and place of allotment money payment.
- It should contain the interest that will be charged on allotment money receiving after the due date.
- It should include the consequences of non-payment of the allotment money.
- It must include the reference number of the share application and the applied number of shares.
Allotment Letter Format
Refer to the following Allotment Letter Format before writing it.
Allotment Letter Sample
Refer to the following Allotment Letter Sample before writing it.
Sample Allotment Letter To Allot A Plot
Sample Allotment Letter for Parking Space Allotment
FAQ’s on Allotment Letter
Question 1.
What is an Allotment Letter?
Answer:
It is a letter that confirms the number of shares allotted to an individual for a new issue of shares or an existing stockholder following the rights issue.
Question 2.
What should the company provide on receipt of share payment?
Answer:
The allotment will be presented as a temporary certificate of share ownership on receipt of share payment.
Question 3.
Why is an Allotment Letter required?
Answer:
A shareholder can know about his/her allotment of shares through this letter. This letter also intimates about the due of allotment money from the shareholder.