What is new rule regarding forfeiture of share at premium
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Share forfeiture is the process by which the directors of a company cancel the power of a shareholder if he does not pay his call money when the company demands for it.
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.
The company will not repay the funds received from the shareholder. In order to do a share forfeiture the Articles of Association of the company should contain a provision for that.
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.
The company will not repay the funds received from the shareholder. In order to do a share forfeiture the Articles of Association of the company should contain a provision for that.
bajajmahinder:
How the company adjust security premium amount as per new amendments
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