Annulment of Forleiture. The forfeiture maybe annulled on the request of the member whose shares stand forfeited as per the proceedings detailed above. If the Board of Directors decides to do away with Q le forfeiture and restores the forfeited shares to the sh ?reholdermember who wants the annulment, it has to pass such a resolution at its meeting and sets the terms and conditions on which the forfeited shares shall be restored to luim. Usually the terms set are the payment of all umpald call mon, N together with the interest due thereon.
Such a resolution. if adopted, cancels the forfeiture and restore the shares to the member who abides by the terms set for the purpose. This is known as annulment of forfeiture
The Secretar N then enters the name of the member again into the Register of Members w hich action is called the Restoration of Name
RE-TSSUE OF FORFEITED SHARES
Surrender of Shares Liable to ForfeitDre. A share which is liable to forfeiture may be surrendered by the member concemed. Such voluntary surrender shares can be accepted by the company. If the company accepts the surrender automatically shares stamd forfeited and cancelled without going into the formalities of forfeiture, which such a case IS unnecessary and unwarranted.
The company is entitled to re-issue the surrendered shares. Shares can be surrendered only what they are liable to forfeiture. In amy case the surrender IS not valid because ir oilier cases surrender amount to reduction of capital.
The surrender also results in the termination of the membership of the company in the forfeiture this termination originates from the company But in surrender it originates from the members' side.
Reissue of Shares Forfeited. Forfeited shares can be re issued by the company on a resolution adopted by the Board of Directors and on the terms set by the said resolution. However, these shares:
(i) can be.issued in small lots;
(ii) can be issued at discounts;
(iii) discount allowed must not exceed the -amount already receipted . s these shares; and
(iv) allottees may be asked to pay all tltc calls due thereon m -one instalment only
One surrendered sertificate(S) must be cancelledby a crossed cancellation mark preferablybypurting a ntber-stamped nrrked sancelled''. The same may be destroyed Titer three years after a recitation is. passed by the Board of Directors:
if a oertificateis reliewed ordupli ate one isissued v ith afraud;nt motive, theconipanynuaybepunis,In addition to this every erp officer in default may be liable to imprisonment upto six mon or a fine upto Rs, 10,000 or both.
(.N) if a person fraudulently impersonates the real owner and attempts to obtain or obtains a duplicate certit Gate, he is liable to
an imprisonment extending three years and also a Urine.
RtGHT SHARES
178 'S SECRETAR'ALPRACTICE
by he shareholder to whom rights shares has e been offered and LO e n a offer issued by the company must contain a statement of this right Ho.this provision of He Act shall not be deemed to extend the time Air' which the offeror rights shares should be accepted or to allow any person .,exercise his right of renunciation for a second time on the ground that he
person in whose favour the shares Severe first reltounced has declined to take the shares: