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When can shares be forfeited?

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Question

When can shares be forfeited?

Short Answer
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Solution

When a shareholder fails to pay the allotment money or any subsequent calls, the company informs the shareholder by giving him or her proper notice. If, even after the notice, the shareholder fails to pay the due amount, the company forfeits the shares allotted to him/her.

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Chapter 1: Accounting for Share Capital - Question for Practice [Page 67]

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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 67
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