Explain the following term/concept.
Forfeiture of shares
(a) Forfeiture of shares is a process where the company forfeits the shares of a member or shareholder who fails to pay the call on shares or installment of the issue price of his shares within a certain period of time after they fall due.
(b) In other words, when the shareholder fails to pay the full amount of share which he agreed to pay in installments, the company can cancel his shares. The company will give 14 days' notice; after 14 days if the shareholder does not pay the company will forfeit his shares and strike his name from the register of shareholders.