Allotment - Definition - Law Dictionary Home Dictionary Definition allotment

Definition :

Allotment, partition, the distribution of land under an inclosure Act, or shares in a public undertaking. See COMPANY. By (English) Companies Act, 1929, ss. 39-42, reproducing and amending s. 85 of the Companies (Consolidation) Act, 1908, no allotment of the share capital of a company can be made unless the conditions therein contained have been complied with.

In Company law 'allotment' means the appropria-tion out of the previously unappropriated capital of a company, of a certain number of shares to a person. Till such allotment the shares do not exist as such. It is on allotment in this sense that the shares come into existence, Sri Gopal jalan and Co. v. Calcutta Stock Exchange Assn. Ltd, AIR 1964 SC 250 (252): (1964) 3 SCR 698. [Companies Act, 1956, s. 75(1)]

Allotment is an appropriation to some person or corporation of a certain number of shares, but not necessarily of any specific share, Halsbury's Laws of England, Vol. 7(1), 4th Edn., Para 422, p. 276.

Means the grant by a person duly authorized in this behalf of a right of use or occupation of any immovable evacuee property to any other person, but does not include a grant by way of lease. [The Administration of Evacuee Property Act, 1950, s. 2(a)]