calls in arrears

Normally articles of association of a  Company provides the procedure of forfeiting of Shares.Clause 29 of Table A mention the same.

Accordingly the procedure is as followes:-

1.if a member fails to pay any instalment of call, on the appointed day thereof, the Board may serve a notice on him requiring to make the balance of payment alongwith interest, if any.

2.the notice should mention a specified date on or before which the payment should be made.

3. it will also mention that non-payment of the same would result the forfeiture of shares.

4. thereafter, if the requirement of the notice is not complied with, then the Board, at their meeting, may pass a reolution effecting the  forfeitures of  the shares.

5.the forfeited shares may be sold or disposed of on such terms and manner as the board may think fit.

6.listed company should comply with the listing agreement.

Thanks,

CS Siddhartha Banik