Arrange the following in correct order for issue of shares-

(A) Share forfeiture

(B) Share Application

(C) Share Allotment

(D) Unpaid Call

Choose the correct answer from the options given below:

1. (B), (A), (C), (D)
2. (B), (C), (D), (A)
3. (B), (A), (D), (C)
4. (C), (B), (D), (A)

The correct sequence for issue of shares follows a logical chronological order:

Share Application (B) comes first, where prospective shareholders submit their applications along with application money to purchase shares of the company.

Share Allotment (C) follows next, where the company allots shares to successful applicants after receiving their applications. The allotment money becomes due at this stage.

Unpaid Call (D) occurs when shareholders fail to pay the call money (allotment or any subsequent calls) demanded by the company within the specified time period.

Share Forfeiture (A) is the final step that happens only when call money remains unpaid even after proper notices. The company forfeits the shares for non-payment.

The sequence can be understood as: Application → Allotment → Default in Payment → Penalty (Forfeiture)

Share forfeiture is a consequence of non-payment, not a regular step in the normal issue process. It only occurs when there is default in payment of calls.

Therefore, the correct order is: (B), (C), (D), (A)

Correct Answer: Option 2