If a company is listed in the Australian Securities Exchange and shareholders fail to pay the amount due on allotment,the shares forfeited must be refunded in full to defaulting investors.

Question

Quizplus · Accepted Answer

If shareholders fail to pay the amount due on allotment, the company has the right to forfeit their shares and sell them to recover the amount owed. The proceeds from the sale would be used to pay off any outstanding debts or liabilities before any refunds are given to the shareholders. Therefore, the shares forfeited may not necessarily be refunded in full to the defaulting investors.

If a Company Is Listed in the Australian Securities Exchange