Forfeiture of shares

This query is : Resolved

Dr. Sharad Garg (Querist)
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06 January 2010 Does a shareholder after forfeiture of his shares, remain liable to the company for unpaid part of capital on his shares? Until when and to what extent does he remain liable?

CA Vanesh Nadar

CA Vanesh Nadar (Expert)
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07 January 2010 Hi

You first have to understand the concept:

1. Share forfeiture means cancellation of Shares issued earlier on failure to pay the amount called for.

2. The Share holder should have given adequate notice in this regards.

3. Once the shares are forfeited the Shareholder would not be liable for the same nor he will be getting the refund of the money paid earlier.

With Warm Regrads
M. Vanesh Kumar
CA Students - Expert Association

Dr. Sharad Garg

Dr. Sharad Garg (Querist)
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09 January 2010 How about the unpaid part of the face value of shares? Will the shareholder be liable for it after forfeiture or not?

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Dr. Sharad Garg

Dr. Sharad Garg (Querist)
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10 June 2010 Thanks for the response