What Is Forfeited Shares English

What Is Forfeited Shares?

Forfeited shares are shares that a company has taken back from investors due to nonpayment of the outstanding amount. This action typically occurs when shareholders fail to meet their financial obligations related to the shares’ purchase.

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Forfeited Shares

Forfeited shares occur when a shareholder does not fulfill payment commitments, prompting the company to retract ownership. This measure is often a last resort after the shareholder has been given ample notice and opportunity to settle any dues.

The process of share forfeiture serves as a mechanism for companies to enforce payment discipline among shareholders. When shares are forfeited, they are essentially returned to the company, which may then decide to cancel them, hold them, or reissue them to new investors.

The forfeiture of shares results in the loss of all rights associated with the shares for the origi