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Shares can be forfeited: |
For non-payment of call money For failure to attend meetings For failure to repay the loan to the bank For which shares are pledged as a security |
For non-payment of call money |
The correct answer is option 1- For non-payment of call money. Shares can be forfeited for non-payment of call money. If the calls in arrears are not paid within the stipulated time, the company may decide to forfeit the shares of the defaulting shareholders. The company typically issues a notice to shareholders to inform them about payment otherwise there shares will be forfeited. Forfeiture involves canceling the shares and removing the shareholder's rights. |
