Can anyone kindly let me know the solution, for the following problem:
A private Limited Company has been incorporated with two subscribers(who are also the directors), but after the incorporation of the Company one of the subscriber has not paid the amount which has to be paid by him, so what is the remedy available for the Company, can it forfeit the shares.
13 January 2011
The company is incorporated based on the undertaking of the subscribers to subscribe for the number of shares specified by them in the MOA. The subscribers of MOA automotically become the shareholders on the date of incorporation for the respective shares undertaken by them to be subscribed.
So in my opinion you cannot forfeit the shares. You have to first allot the shares. Afterwards the shares may be transferred.
CAclubindia
