ILLUSTRATION 59. Sam Ltd. invited applications from public for 1,00,000 equity shares of $ 10 each at a premium of $. 5 per share.

The entire issue was underwritten by the underwriters A, B, C and D to the extent of 30%, 30%, 20% and 20% respectively with the provision of firm underwriting of 3,000, 2,000, 1,000 and 1000 shares respectively. The Underwriters were entitled to the maximum commission permitted by law. The Company received applications for 70,000 shares from public out of which applications for 19,000, 10,000, 21,000 and 8,000 shares were marked in favour of A, B, C, and D respectively.

(A) Calculate the Liability of each one of the underwriters treating (i) firm underwriting shares on par with marked applications (ii) firm underwriting shares on par with unmarked applications Also ascertain the underwriting commission payable to the different underwriters.

(B) Also Ascertain the underwriting commission payable to the different Underwriters.