Consider the given steps below related to forfeiture of shares due to non receipt of allotment money and their re-issue and arrange them in correct sequence :-
(A) Reissue of forfeited shares and transfer of gain on reissue of forfeited shares.
(B) Notice to shareholder regarding non-payment of allotment money and call money.
(C) Non-payment of allotment money and call money by shareholder.
(D) Forfeiture of shares for non-payment of allotment and call money.
Choose the correct sequence of the above steps from the options given below:
Consider the given steps below related to forfeiture of shares due to non receipt of allotment money and their re-issue and arrange them in correct sequence :-
(A) Reissue of forfeited shares and transfer of gain on reissue of forfeited shares.
(B) Notice to shareholder regarding non-payment of allotment money and call money.
(C) Non-payment of allotment money and call money by shareholder.
(D) Forfeiture of shares for non-payment of allotment and call money.
Choose the correct sequence of the above steps from the options given below:
Solution
The default must occur first, then the company issues a notice, then the Board forfeits the shares, and finally the forfeited shares are reissued with the gain transferred to Capital Reserve.
Sequence: (C) default, (B) notice, (D) forfeiture, (A) reissue.
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