Letter
By An Underwriter To The Company For Underwriting Shares
The
Secretary,
A B Co.
Ltd.,
........................
Dear
Sirs,
Sub:
Underwriting of shares offered by A B Co Ltd for public subscription
We
understand that your company proposes to issue..........................equity
shares of Rs …………….. Each and offer the same for public subscription at Rs .
……………..per share. We offer our services for underwriting these shares, provided
that the shares are offered to the public in accordance with the conditions
laid down in prospectus settled by you in consultation with us and the rate of
our commission is disclosed therein.
2.
We will put the application for allotment of such shares, which remain unsubscribed
on the closing of the list under the prospectus, for subscription of those
shares. If the shares offered for public subscription are subscribed by the
public on or before the day of closing list, our liability will cease but if
smaller number of such shares is so allotted, we will stand for the remaining
shares and shares may be allotted on our application and we shall pay all
application and allotment money in respect thereof in accordance with the
prospectus.
3.
We authorise you to put in an application for such of the shares as the company
is authorised by para 2 above to allot to us on the Application Form and to
appoint any person to sign such application on our behalf and to conclude an
agreement for an allotment to us pursuant thereto.
4. You
shall pay us commission at the rate of ……………..% in cash on the whole nominal
value, within……………..days after the date of allotment of the shares. However,
you may withhold the payment of commission, until the application and allotment
money payable in respect of the shares allotted to us in accordance with our
undertaking, is not paid by us.
5.
Please intimate to us about the acceptance of our application at an early date.
Yours
faithfully,
M/s…….……..
Managing
Partner
No comments:
Post a Comment