In case of over subscription, the directors may

(A). Accept some applications in full and reject excessive applications.

(B). They can make pro-rata allotment to all.

(C). They can adopt a combination of the above two alternatives.

(D). They can make preferential allotment to some applicants.

When shares are over-subscribed (applications received exceed shares available), directors have specific powers to deal with the situation.

Valid Methods Available to Directors:

Option (A) - Directors can accept certain applications in full and reject the excess applications entirely. This is a legitimate approach.

Option (B) - Pro-rata allotment to all applicants is a common and fair method where available shares are distributed proportionately among all applicants based on their application amounts.

Option (C) - A combination approach is also permitted where directors may accept some applications completely while making pro-rata allotment to the remaining applications. This hybrid method provides flexibility.

Option (D) - Preferential allotment to certain applicants is not permitted in case of over-subscription during a public issue. Preferential allotment is a distinct procedure requiring special compliance with SEBI regulations, shareholder approvals, and cannot be arbitrarily done during over-subscription situations. It would be unfair and violate principles of equity among investors.

Since options (A), (B), and (C) are valid methods while (D) is not permitted, the correct answer is Only (A), (B) and (C).

Correct Option: 2