FORFEITURE OF SHARES
1. Subject -
Forfeiture of shares.
2.Passing Authority - Board of Directors.
3. Nature of the Resolution -
Resolution with simple majority.
4. Specimen Resolution:
"RESOLVED
THAT: the under mentioned shares in the capital of the company be and are
hereby forfeited:-
________________________________________________________________
No. of shares Distinctive Registered
Nos. Holder(s)
__________________________________________________________________________
_________________________________________________________________________
5. Guidelines:
1) The provisions in the Articles
should be complied with. The procedure
laid down should be followed strictly.
2) The right to forfeit belongs to
the company and therefore a member liable for money cannot insist thereupon.
3) Notice of forfeiture should be
given to the members concerned as otherwise the forfeiture will be invalid.
But accidental non-receipt of notice
does not by itself affect validity of forfeiture.
4) Any defect in the notice
invalidates the forfeiture.
6.
Filing: Not applicable.