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ANDHRA PRADESH
Name : N. Ramachandra Reddy
Designation : Head of CCP
Branch : DCCP
Institute : G.P.W; Warangal
Year/Semester : DCCP I YEAR
Subject Code : 104 Business Organization
Topic : Raising the Capital for Joint Stock
Company
Duration : 50 Mts
Sub Topic : Forfeiture of Shares
Teaching Aids : PPT, Pictures, Animations
CCP104.70 1
Objectives
CCP104.70 2
Recap
Allotment of Shares
CCP104.70 3
Calls on shares
CCP104.70 4
Forfeiture of shares :
CCP104.70 5
It is usual for every company to provide for such
eventuality in its Articles of Association
CCP104.70 6
Also the defaulting member must be given at least 14
days notice warning him that his shares are going to
be forfeited if he does not clear the dues in time
CCP104.70 7
Re-allotment of shares :
CCP104.70 8
The forfeited shares can be reissued for any price as
per conditions prevail in the capital market
CCP104.70 11
Transfer to a minor
CCP104.70 12
Underwriting of shares :
CCP104.70 13
This guarantee given by such individuals or institutions is
called underwriting and those giving such guarantee are
known as underwriters
CCP104.70 14
Summary
CCP104.70 15
Quiz
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1. Who can forfeit the shares of a shareholder
1. Managing Director
2. Secretary
3. Manager
4. Board of Directors
CCP104.70 17
2. The Re-allotment of forfeited shares should
be sanctioned by the resolution at
CCP104.70 18
Frequently asked questions :
1. Write notes on
1. Forfeit of shares.
2. Re-allotment of shares.
CCP104.70 19
Assignment
2. Explain briefly
1. Forfeiture of shares.
2. Re-allotment of shares.
CCP104.70 20