Q.State with reasons whether the following statement is True or False:
It is compulsory to allot shares to every applicant.

A Share Certificate is the proof of title to shares. It is a document issued by the company under its common seal certifying that the named person is the holder of the stated shares.

A share certificate is issued to a shareholder after allotment (within two months of allotment as per the Companies Act, 2013). It shows the shareholder's name, the number and distinctive numbers of shares held, and the amount paid up. Being issued under the company's seal, it serves as documentary evidence (prima facie proof) of the member's title to those shares.

Why the other options are wrong: …

The statement is True. A share certificate can be issued for both partly paid-up and fully paid-up shares.

A share certificate states the shares held by a member along with the amount paid up on them. When shares are only partly paid, the certificate shows the amount actually paid; when they are fully paid, it shows the full value as paid up. In either case the company issues a certificate as proof of the me …