24 March 2011
We are in a Public Limited company ( Unlisted ) which is formed for allotment of Units instead of a Co Operative Society. The company is operated like a Sec 25 Company but is not registered as Sec 25 co.
There are members who have not paid the Maintainance dues , Property Tax dues , and other calls of money made by the company from time to time as resolved in the Board meetings as per powers given to it via the articles.
My Query is - Our Articles provides for forefieture of shares , if the member / Shareholder who is using the units / Gala ( Real Estate Property ) does not pay dues. Is it allowed as per ROC , and by Forefieting such shares wether the company has done a right thing , although it has followed guidance of a Co Secretary , it looks a little difficult to find a solution for such forefietures validity when the shares are fully paid ones.
25 March 2011
If your comany is not registered under sec. 25 of the companies act, 1956 than the company shall be treated as noraml company and upon such situation company having the right to forfeit the share of defaulter shareholder if any call money due from such shareholder... but once the share is become fully paid up than company shall have no power of forfeiture .......
25 March 2011
Mr. Gupta , thanks for your responce , but can we also not forfiet when there is a provision in the article for non payment of maintance charges , property taxes due from such member.
CAclubindia
