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    Question

    Forfeiture of shares occurs when a

    shareholder:
    A Sells their shares on the stock exchange. Correct Answer Incorrect Answer
    B Fails to pay the call money on the due date. Correct Answer Incorrect Answer
    C Voluntarily returns the shares to the company. Correct Answer Incorrect Answer
    D Gifts the shares to a family member. Correct Answer Incorrect Answer

    Solution

    If a shareholder fails to pay any call (an installment on shares) by the due date, the company has the right to forfeit the shares. This means the shareholder loses the shares and all money already paid on them, and their membership is canceled.

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