What is forfeiture of shares and under what conditions can shares be forfeited?

Here is the answer to Question Eleven: Meaning of Forfeiture of Shares: Forfeiture of shares refers to the compulsory termination of membership of a shareholder by the company due to non-payment of call money (allotment, first call, or final call) within a stipulated period after a proper demand. When shares are forfeited, the shares are cancelled, and any amount already paid by the shareholder on those shares is retained by the company. When Shares Can Be Forfeited: Shares can be forfeited under the following conditions: The shareholder fails to pay the amount due on any call (application, allotment, first call, or final call) by the specified due date. The company's Articles of Association* must contain a clause that authorizes the Board of Directors to forfeit shares. A proper notice* must be served to the defaulting shareholder, demanding payment and warning of forfeiture if payment is not made within a specified period (e.g., 14 days). A resolution* for forfeiture must be passed by the Board of Directors at a duly convened meeting. Last free one today — make it count tomorrow, or type /upgrade for unlimited.