Forfeiture of shares based on refusal of members to respond to call on shares

Forfeiture of shares based on refusal of members to respond to call on shares

March 26, 2019

Where a member fails to pay any call or installment of a call on the day appointed for payment, the directors are required to serve a notice on such member requesting the payment and the accrued interest. If the member does not respond within 14days to such notice he shall forfeit his shares.

The forfeiture of such shares shall be effected by a resolution passed by the directors of the company. A forfeited share may be sold or otherwise disposed of on such terms or in any manner as the directors think fit. The forfeiture may be cancelled on whatever terms as the director may deem fit and the proceeds given to the company. A transfer of shares will be executed and registered in the name of the new holders of the then forfeited shares.

Once a member is affected by the forfeiture of his shares he ceases to be a member of the company, however he shall still be liable to pay the company all monies that he was meant to pay before the forfeiture and his liability to the company ceases after he has made full payment of what he owes the company in respect of the shares.

A statutory declaration shall be prepared to state that declarant is a director or the secretary of the company, and that a share in the company has been duly forfeited on a date stated in the declarations, shall be prima facie evidence to show that such share was forfeited.

Team 618bees

For Further inquiries;

www.618bees.com

info.618bees.com

012803791

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

 

 

More Articles

Search

Connect With Us

Got any questions?

If you are having any questions, please feel free to ask.

Send us an email

Frequently Asked

  • What additional documents do I require to file my Annual Returns?
  • What is the first thing I must do to register a business in Nigeria?

    To register a business in Nigeria; you would need to conduct a name search of the business. You can achieve this using your CAC-CRP account.
  • What are the terms of a contract?
    • an offer and an acceptance.
    • competent parties
    • Consideration
    • Legal subject matter
    • Mutual agreement/ Assent
    • Conesus ad idem
    • Obligation
  • If I have NAFDAC Registration number, do I still need SON registration number?

    SON Product Registration scheme is mandatory for all SON’s regulated products as mandated by SON Act 56 of 1971, 20 of 1984, 18 of 1990 as amended.

    This is irrespective of the registration done by NAFDAC
  • What is personal data?

    This is any information that can be used to identify an identifiable human person such passport photograph.
  • How long does the registration of an industrial design last?

    It is effective for an initial period of 5 years from the date of the application for registration and renewable for two consecutive periods of 5 years
  • When can I start renewal of the registration of my product(s) with NAFDAC?

    You can start renewal 6 months to the date of expiry.
  • Can a minor be a company director?

    No, a minor cannot be a director. A minor under Nigerian Law is anyone who is below 18 years of age.
  • Will my trademark registration in Nigeria protect me worldwide?

    No, all intellectual property (IP) rights which includes trademarks are territorial, which means you are protected in the countries in which you register them.
All FAQs
Call Us Now on +234 901 719 0079 Whatsapp icon Chat on WhatsApp