Failed to take subscribed shares

Shah Trupti (Querist) 03 January 2011 This query is : Resolved
Dear sir,

If at the time of incorporation, the subsciber has been alotted shares. But the subscribers had failed to take the subscribed shares. so what are the legal provisions in this matter?

kindly, help m as early as possible

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A V Vishal (Expert) 03 January 2011
If the subscribed shares are not paid-up, the shares can be forfeited and re-issued. However, it is unclear whether the minimum capital was subscribed and paid-up at the time of incorporation.

Ahmed Daud Girach (Expert) 04 January 2011
Now a days almost full amount is paid on application itself how such eventuality of unpaid share occurs I dont understand.However as per company law shares will be forfited on nonpayment.But again I will appreciate if Shah Trupti elaborates the querry.

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