Forfeiture of shares:
Dispossessing a shareholder of his right to hold shares of a company means forfeiture. Where shares are issued, the nominal value of the shares and the premium, if any, are made payable either in full along with the application or in instalments as for instance a part with the application and the balance with premium payable in one or more calls duly made by the board of directors of the company. The conditions for issue of shares are contained in the prospectus which provides that any call, which is not paid on or before the due date, will be payable with interest after the due date at such rate as may be specified till it is paid. If a member fails to pay any call or instalment of a call by the due date the board at any time thereafter serve notice on him requiring him to pay the unpaid amount together with interest which has accrued. This is the first notice served on a shareholder who has not paid any call.
For more details ->Click here
No comments:
Post a Comment