Answer-Forfeiture of shares occurs when a shareholder:

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.

Question

Forfeiture of shares occurs when a

shareholder:

A Sells their shares on the stock exchange.

B Fails to pay the call money on the due date.

C Voluntarily returns the shares to the company.

D Gifts the shares to a family member.

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Solution