Forfeiture of shares
Section 28 to 30 of the Companies Act 2013 provides the process of forfeiture of shares.
As per section 28 of the act, if a member fails to pay any call or installment there of by the stipulated due date, a notice is to be served on the member to that effect.
Section 29 of the act describes the process and contents of the notice. A time period as Articles of Association of the company is to be given,
Section 30 of the act empowers the company to forfeit the shares of the member if he fails to comply with the notice served/
The forfeited shares may be sold to others by the company. The members still remain liable to pay any dues as on the date of forfeiture of the shares
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