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Short Answer Question When Can Shares Be Forfeited? - Accountancy

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Question

Short Answer Question

When can shares be Forfeited?

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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 even after the notice, the shareholder fails to pay the due money, then the company forfeits the shares allotted to him/her.

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Chapter 1: Accounting for Share Capital - Question for Practice [Page 64]

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NCERT Accountancy - Company Accounts and Analysis of Financial Statements [English] Class 12
Chapter 1 Accounting for Share Capital
Question for Practice | Q 3 | Page 64
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