Question

What are the effects of Forfeiture of share?

08 Sep 2023
Answer :
Word Count : 621

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 _________ ______ ____ _____ ____ __________ _______ _____ ________ ______.
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