When can shares be Forfeited?
Shares can be forfeited when a shareholder fails to pay one or more instalments on shares allotted to them. This specifically includes the failure to pay allotment money and/or call money. In such a case, the company has the authority to cancel the allotment due to breach of contract.
However, this action must be taken within the framework of the provisions in the company's Articles, usually based on Table F. The directors must strictly follow the laid down procedure to forfeit shares for non-payment of calls made.
Explanation
The answer is derived directly from the provided text which states that forfeiture occurs when shareholders fail to pay instalments like allotment or call money. It highlights the requirement for the company to act within the provisions of its Articles (Table F) and follow the strict procedure laid down for such actions.