Advertisements
Advertisements
Question
When can a company forfeit the shares held by a shareholder?
Solution
When a shareholder fails to pay the allotment money or any subsequent calls, then the company informs the shareholder by giving him/her a proper notice. If after the notification, the shareholder still fails to pay the due money, then the company is allowed to forfeit the shares of such shareholders.
shaalaa.com
Is there an error in this question or solution?
