Hey guys, Welcome back!!!! Do you ever hear the word forfeiture? Do you want to know about it? Then this article is for you… I will explain the forfeiture of shares in detail. Let’s get started……… I have discussed about shares in my previous articles. I have told you that company may claim share money in parts or in lump sum. If company claims money in parts, and shareholder fails to pay any call then company may forfeit his shares. This forfeiture of share means cancellation of shares for non-payment of call money due. It means company will cancel these shares due to non-payment of calls. This cancellation of shares will be known as “ forfeiture of shares ”. Now company will not refund any amount which it has received from shareholders. It will be receipt on the part of company. However, shares can be forfeited only if the AOA of the company allows forfeiture. And company must give 14 days’ notice to the defaulting shareholder so that he can pay
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