GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The power to forfeit shares must be provided in the
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Company Law Board
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Registrar of Companies
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Memorandum of Association
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Articles of Association of the company as the Companies Act does not contain any provision regarding forfeiture of shares
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Explanation:
Detailed explanation-1: -Forfeiture of share means the cancellation of the shares for non-payment of calls due. But, the company can forfeit shares only if the Article of Association of the company allow forfeiture.
Detailed explanation-2: -A company can forfeit shares only when the Articles of Association of the company contain a provision for share forfeiture. A shareholder subscribing to the shares of a company owes the subscription price of the shares to the company. The company may call upon the shareholder to pay the price in instalments.
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