Forfeiture of Shares Concepts

The video tutorial explains the concept of share forfeiture, which occurs when a shareholder fails to pay the required installments on shares. The process involves the cancellation of shares and retention of any paid money by the company. The board of directors, empowered by the articles of association, can forfeit shares after giving a 15-day notice to the shareholder. The tutorial covers the conditions for forfeiture, the notice process, and the implications of share cancellation.

What is the first topic discussed in the video?

• Reissue of shares

• Forfeiture of shares

• Dividend distribution

• Shareholder meetings

What happens when a shareholder does not pay the installments?

• The shareholder is given more time

• The shares are forfeited

• The shareholder is fined

• The shares are transferred to another shareholder

In the given example, what is the total value of the share?

• 20 rupees

• 10 rupees

• 5 rupees

• 15 rupees

What does forfeiture of shares mean?

• Transferring shares

• Cancelling the shares

• Paying dividends

• Issuing new shares

Who has the power to forfeit shares according to the articles of association?

• Board of Directors

• Shareholders

• Company Secretary

• Auditors

What must the board of directors do before forfeiting shares?

• Send a notice to the shareholder

• Pay dividends

• Transfer the shares

• Sell the shares

How many days' notice must be given to the shareholder before forfeiture?

• 20 days

• 10 days

• 30 days

• 15 days

What happens to the money already paid by the shareholder after forfeiture?

• It is refunded

• It is retained by the company

• It is transferred to another shareholder

• It is used to pay dividends

What is the main reason for the forfeiture of shares?

• Transfer of shares

• Non-payment of installments

• Paying dividends

• Issuing new shares

What is retained by the company after the shares are forfeited?

• The dividends

• The shareholder's membership

• The shares

• The money paid by the shareholder