Practicing Success
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below: |
Both Assertion (A) and reason (R) are correct and R is the correct explanation of A. Both Assertion (A) and reason (R) are correct and but R is not the correct explanation of A. Assertion (A) is true but Reason (R) is not correct. Assertion (A) is not true but Reason (R) is correct. |
Both Assertion (A) and reason (R) are correct and but R is not the correct explanation of A. |
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 authorize the directors to forfeit the shares for non-payment of calls made. |