Therefore, Share Capital Account should be debited at the rate at which it was credited. Share Forfeiture and Re-issue of Forfeited Shares Share Forfeiture. Before such forfeiture is done a notice must be given to the shareholder. The person remains liable to pay to the company all money which, at the date of forfeiture, was payable by the person to the company in respect of the shares (together with interest at the rate of 8% per annum beginning on the date of forfeiture on the money for … With forfeiture, the defaulting shareholders are no longer liable for the calls made on those shares and instead lose the right to their partly paid shares. Forfeiture means cancellation of the shares and to that extent, the share capital stands reduced. ; Proper Notice – A proper notice is to be served to the defaulting shareholders mentioning the amount to be paid, and the notice should be sent 14 days before the payment date. Therefore, after the forfeiture of shares, the calls-in-arrears are not recoverable. 2.In case of non – receipt of the final demand cum forfeiture notice, shareholders can request for duplicate demand cum forfeiture notice with the Registrar and Share Transfer Agent or the same may also be downloaded from Company’s website www.vxl.net The notice must give not less than fourteen days’ time from the date of service of notice for the payment of the amount due. CONSIDERATION FOR FORFEITURE OF THE SHARES OF THE COMPANY. The notice must provide the shareholder with a minimum of 14 days to make the payment due, or his shares will be forfeited. 1) If any Member fails to pay, on the day appointed for payment thereof, any call in respect of any share allotted to or held by such Member, the Board may, at any time thereafter during such time as the call remains unpaid, direct the Secretary to forward to such Member a notice in the form, or as near thereto as circumstances admit, of Form "B" in the … Non-compliance of Notice: Forfeiture of Shares. Even after such notice if the shareholder does not pay, then the shares will be canceled. Where the holders of party paid shares do not pay the calls made on the shares after adequate notice is given to them to make the payment, the company has the right to forfeit the shares. The purpose of the notice is to allow the shareholders to pay off the call … The amount already received on such shares is forfeited. Forfeiture of Shares issued at Premium- This situation has two possibilities, 1. The notice must also state that in the event the non-payment of the amount due within the period mentioned in the notice the shares in respect of which call was made will be liable to forfeiture. O'Reilly had upwards of 30,000 shares valued between $20-$30 that would have vested during the 24 months' notice. (shares forfeited for non–payment of allotment money and calls made). Securities Premium amount has been received- Here, the share capital amount is debited with the called-up amount and then it will be credited to Shares Allotment (amount not received on allotment), Forfeited Shares ( … Upon allotment, the applicants are liable to pay the allotment money and call money within the time specified. A joint stock company allots shares to the applicants applied for the shares. The motion judge's decision on the unvested shares and the ONCA's subsequent dismissal made a difference of upwards of half a million dollars in the overall damages awarded to O'Reilly. The Chairman of the Company informed the Board that the Company has given the letters to the Shareholders for the purpose of payment of call amount in respect of the partly paid shares held by them, and in case of failure to pay the amount along with interest as specified in the notice, the shares … A person whose shares have been forfeited ceases to be a member in respect of the forfeited shares. Powered by Articles of Association – Share forfeiture must be under the provisions mentioned in the articles of association. For forfeiture of shares, the calls-in-arrears are not recoverable the amount received. Capital Account should be debited at the rate at which it was credited ceases to a! Date of service of notice: Share forfeiture the forfeiture of the shares will be forfeited shareholder with a of! 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