Study the following cases and express your opinion.X owns 100 shares a

1.	Study the following cases and express your opinion.X owns 100 shares and Y owns 500 shares of RED tubes. The company has asked all its shareholders to pay the balance unpaid amount of rupees 20. X pays full money demanded by the company and Y failed to pay the money due to poor financial condition.(a). Can the company forfeit the shares of Y?(b). Can the company forfeit the shares of X?(c). Can X transfer his shares?
Answer» (a) Yes. The company can forfeit the shares of ‘Y’ as he failed to pay calls on shares within a certain period. (b) The company cannot forfeit the shares of ‘X’ as he paid the full amount of shares. Only partly paid-up shares can be forfeited. (c) Yes. X can transfer his shares by filling Instrument of transfer.

Study the following cases and express your opinion.X owns 100 shares and Y owns 500 shares of RED tubes. The company has asked all its shareholders to pay the balance unpaid amount of rupees 20. X pays full money demanded by the company and Y failed to pay the money due to poor financial condition.(a). Can the company forfeit the shares of Y?(b). Can the company forfeit the shares of X?(c). Can X transfer his shares?

Answer»

(a) Yes. The company can forfeit the shares of ‘Y’ as he failed to pay calls on shares within a certain period.

(b) The company cannot forfeit the shares of ‘X’ as he paid the full amount of shares. Only partly paid-up shares can be forfeited.