Consider this if…
- Amounts due on shares remain unpaid
- The constitution appears to allow forfeiture
- A forfeiture notice has been issued or received
- The company needs to understand alternatives to forfeiture
How it works
Tell us what you need to change
We identify the company, the people involved, the intended result and any deadline or transaction driving the work.
At the first conversation
We check the existing record
We review the available company extract, constitution, registers, resolutions and agreements relevant to the proposed step.
Before documents are prepared
We prepare the legal documents
The required resolutions, notices, consents, agreements and records are prepared as one consistent set.
Timing confirmed with the scope
Signing, records and lodgement
We explain what must be signed, update the company record and deal with the required lodgement within the agreed scope.
After approval and signing
Fee
Quoted in writing before we start
GST inclusive
The scope, fee and expected timing are confirmed in writing before work begins.
Confirm that the power exists
The constitution and issue terms need to authorise the proposed action and define the circumstances in which it can occur. The company cannot assume it has a forfeiture power merely because money is owed.
Procedure protects the validity of the result
Calls, notices, time limits, board decisions and the shareholder's opportunity to remedy may all matter. A defective process can turn an internal records issue into a serious ownership dispute.
Consider what happens to the shares
The documents should address cancellation, sale, reissue, proceeds, continuing liability and updates to the register. Tax, accounting and dispute implications may require separate advice.
Frequently asked questions
Can shares be forfeited whenever a shareholder owes the company money?
Not automatically. The source and terms of any forfeiture power, the nature of the unpaid amount and the required procedure must be checked.
What notice must be given?
The applicable constitution, share terms and company-law requirements determine the notice content and timing. These need to be verified for the proposed forfeiture.
Can the shareholder challenge the forfeiture?
A disputed power or defective procedure can be challenged. The company should obtain advice before taking an irreversible step.
Related services
Tell us the company name, what needs to happen and any deadline you are working to.
Ask about this company service