If a company's constitution does not contain rules governing the forfeiture of shares, then the company:
A) may forfeit shares but not reissue them.
B) cannot forfeit shares.
C) may forfeit shares and reissue them at a later date.
D) can register the shares in the name of another shareholder, but cannot receive payment from that shareholder.

Question

Quizplus · Accepted Answer

If a company's constitution does not contain rules governing the forfeiture of shares, then the company cannot forfeit shares. The company would need to amend its constitution to include such rules before it can exercise this power.

If a Company's Constitution Does Not Contain Rules Governing the Forfeiture