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easyMCQCUET Accountancy 2025 30 May Shift 22026CUET Accountancy
1 mark

Shares can be forfeited:

  1. A
    for non-payment of call money
  2. B
    for failure to attend meetings
  3. C
    for failure to repay the loan to the bank
  4. D
    for which shares are pledged as security

Solution & Step-by-step Explanation

Forfeiture of shares means cancellation of membership and shares by the company due to the breach of terms of the issue agreement. This occurs strictly when a shareholder fails to pay the allotment money or subsequent call money within the stipulated time frame, following proper notice from the board of directors.

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Shares can be forfeited:
A
for non-payment of call money
B
for failure to attend meetings
C
for failure to repay the loan to the bank
D
for which shares are pledged as security

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Company AccountsShare CapitalForfeiture of Shares

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