Forfeiture
This query is : Resolved
NEHA V SHARDA
(Querist)
26 June 2009
What does forfeiture mean?
Ankur Garg
(Expert)
26 June 2009
Hi,
Literal meaning of forfeiture is something that is lost.
In company law, if a member fails to pay a valid call with the stipulated time, the company have 2 options:
1. It may sue him for recovery of the amount of the call money after waiting for a reasonable period.
2. Alternatively shares may be forfeited by the company for non-payment of call money if and only if articles authorize the company to do so.
Regards
Literal meaning of forfeiture is something that is lost.
In company law, if a member fails to pay a valid call with the stipulated time, the company have 2 options:
1. It may sue him for recovery of the amount of the call money after waiting for a reasonable period.
2. Alternatively shares may be forfeited by the company for non-payment of call money if and only if articles authorize the company to do so.
Regards
CA.Nikhil Gupta
(Expert)
26 June 2009
In simple words, it means to confiscate.
its sort of penal punishment in layman words.
eg shares are forfeited due to non payment of call money i.e Holder of the shares have to return the same in the name of the company.
its sort of penal punishment in layman words.
eg shares are forfeited due to non payment of call money i.e Holder of the shares have to return the same in the name of the company.
NEHA V SHARDA
(Querist)
30 August 2009
thanks a lot..
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