What are the effects of Forfeiture of share?

The forfeiture of shares is a significant action that can have various effects on a company, its shareholders, and the shares in question. Forfeiture occurs when a shareholder fails to meet their obligations regarding the shares they own, typically related to non-payment of calls (i.e., unpaid amounts on shares). Here are the effects of the forfeiture of shares:

1. Loss of Ownership: When shares are forfeited, the shareholder loses ownership of those shares. The company reverts the forfeited shares back to its ownership, effectively canceling the shareholder's rights and interests in those shares. This loss of ownership is a severe consequence of forfeiture.

2. Cancellation of Unpaid Amounts: Forfeiture allows the company to cancel any unpaid amounts on the forfeited shares. This _________ ______ ______ ___ ___ _____ _____ ______.
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