(Procedure for Forfeiture of Shares) The procedure for forfeiture of shares is as per the Articles of Association or Table ‘F’ of the company
1. Presenting the list of non-paying shareholders in the Board of Directors Presents it to the Director’s House.
2. Sending notices The Directors of the company, having regard to the rules given in the Articles of Association or in Table ‘F’, order that notice be sent to such shareholders who have not paid the amount of call for shares. In this notice, the shareholders are informed that within a certain period (which should not be less than 14 days from the date of receipt of the notice) the amount of the solicitation + interest + other necessary expenses should be paid, otherwise the shares are forfeited. will go.
3. Sending a second notice for payment After the first notice, if the subscriber does not make the payment within a specified time, a second registered notice to the said effect is sent.
4. Passing of motion for forfeiture – If any shareholder does not make payment after the second registered notice, the fact is informed to the Board of Directors and the directors pass the motion for the shares.
5. Intimation of the offer of forfeiture to the shareholder – After the proposal is passed, a notice is sent to the shareholder that his shares have been forfeited, so he should return the certificate.
6. Transfer of received amount to Share Forfeiture Account – The amount received earlier on the forfeited shares is transferred to the ‘Part-Withdrawal Account’.