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Question
Shares can be forfeited ______.
Options
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
MCQ
Fill in the Blanks
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Solution
Shares can be forfeited for non-payment of call money.
Explanation:
A company can forfeit shares strictly for non-payment of call money when a shareholder fails to pay the demanded instalment within the deadline. Forfeiture is a legal penalty that cancels ownership rights and seizes the amount already paid, and it cannot be imposed for missed meetings or personal bank defaults.
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