Practicing Success
Practicing Success
CUET Preparation Today
| What is the forfeiture of shares of a company? |
Pro-rata allotment of shares Cancellation of shares Under subscription Over subscription |
| Cancellation of shares |
| It may happen that some shareholders fail to pay one or more instalments, viz. allotment money and/or call money. In such circumstances, the company can forfeit their shares, i.e. cancel their allotment and treat the amount already received thereon as forfeited to the company within the framework of the provisions in its articles. These provisions are usually based on Table F which authorise the directors to forefeit the shares for non-payment of calls made. |
