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easyMCQCUET Accountancy 2025 3 June Shift 12026Accountancy
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 a security

Solution & Step-by-step Explanation

A company can legally forfeit equity shares only when a shareholder fails to pay allotment or call money demands within the specified grace period, as set out in the Articles of Association.Failing to attend corporate meetings, bank loan issues, or private debt pledge events are not legal grounds for corporate share forfeiture.

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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 a security

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