Document background
The Board Resolution For Forfeiture of Shares is a crucial corporate document used when shareholders fail to pay calls or installments on their partially paid shares within the stipulated timeframe. Under Indian law, specifically the Companies Act, 2013, companies have the power to forfeit shares after following due process, including sending necessary notices to defaulting shareholders. This document is typically prepared after multiple reminders and formal notices to shareholders have failed to elicit payment. The resolution must detail the shares being forfeited, confirm compliance with legal requirements and the company's Articles of Association, and authorize specific actions to implement the forfeiture. For listed companies, additional compliance with SEBI regulations is necessary. The document serves as official record of the board's decision and provides protection against potential legal challenges.
