Effect of forfeitureU.K.
60.—(1) Subject to the articles, the forfeiture of a share extinguishes—
(a)all interests in that share, and all claims and demands against the company in respect of it, and
(b)all other rights and liabilities incidental to the share as between the person whose share it was prior to the forfeiture and the company.
(2) Any share which is forfeited in accordance with the articles—
(a)is deemed to have been forfeited when the directors decide that it is forfeited;
(b)is deemed to be the property of the company; and
(c)may be sold, re-allotted or otherwise disposed of as the directors think fit.
(3) If a person’s shares have been forfeited—
(a)the company must send that person notice that forfeiture has occurred and record it in the register of members;
(b)that person ceases to be a member in respect of those shares;
(c)that person must surrender the certificate for the shares forfeited to the company for cancellation;
(d)that person remains liable to the company for all sums payable by that person under the articles at the date of forfeiture in respect of those shares, including any interest (whether accrued before or after the date of forfeiture); and
(e)the directors may waive payment of such sums wholly or in part or enforce payment without any allowance for the value of the shares at the time of forfeiture or for any consideration received on their disposal.
(4) At any time before the company disposes of a forfeited share, the directors may decide to cancel the forfeiture on payment of all calls and interest due in respect of it and on such other terms as they think fit.
Commencement Information
I1Sch. 3 art. 60 in force at 1.10.2009, see reg. 1