PROSPECTUS AND ALLOTMENT 53
staff. It need hardly be pointed out that there is need for the
greatest accuracy in this work. A Form of Application and
Allotment Sheet will be found in Appendix F (Form 11).

The board will meet in due course, and, if the minimum Allotment.
subscription has been reached, and they have no reason for
suspecting that the cheques for application money will not
be paid, will proceed to allot. A form of resolution to allot
will be found in Chapter XIV.

The secretary’s business will then be to dispatch the allot-
ment letters and letters of regret.

Form No. 12 is a form of Allotment Letter with receipt for
allotment money only attached. Form No. 13 is a form of
Allotment Letter, with receipts attached both for allotment
money and for payment in full. Form No. 14 is an Allotment
Letter, constituting an interim certificate, with receipt forms
for all subsequent instalments attached.

In the absence of any provision to the contrary in the con-
ditions of issue of any shares, debentures, or debenture stock,
a company must within two months after allotment complete
and have ready for delivery the certificates for shares or
debenture stock, or the debentures, as the case may be
(s. 67). It is sometimes more convenient to postpone the
issue of certificates until the shares or stock are fully paid,
and it is therefore desirable to make provision accordingly.
Without any such provision, interim or provisional certificates
must be issued, with receipt forms upon them which are
signed by the company’s bank, upon production of the
certificate and payment of the instalments as they become
due. Form 14 may be used for the purpose. A failure to
comply with s. 67 exposes the officers of the company to
pecuniary penalties and the Court may limit a time within
which the default must be made good [s. 67 (2) (3)].

Letters of allotment are often issued with letters of renuncia-
tion attached, thus enabling the original allottee to renounce
the shares comprised in the letter of allotment in favour of a
third party. Where this course is adopted, a form of accept-
ance must also be attached for signature by the third party
in whose favour the shares are renounced. Form No. 15 in
Appendix F is a letter of allotment with letter of renunciation
and form of acceptance attached. Both the letter of allot-
ment and letter of renunciation require stamp duty of 6d.
The duty chargeable on the letter of renunciation may be
denoted by an adhesive stamp cancelled by the person execut-
ing the letter of renunciation. See also Forms 38 and 39.

If the allotment is renounced the original allottee will never
appear on the register, the first name entered on the register