Non receipt of subscribers money and forfeiture

[CA Adarsh]

Can We forfeiture of shares in case non receipt of subscriber's money from Promoter cum Director of Private limited company at incorporation and Still INC-20A is not filed?

Or Else remedy does private company if above subscriber`s does not part of the company now?

AI Summary

Company Faces Issue with Director's Non-Payment, Delaying Business Start; Options Include Legal Action or Subscriber Replacement. A private limited company faced an issue with a Promoter-cum-Director who failed to pay the subscription money at incorporation, preventing the filing of INC-20A, necessary for commencing business. Forfeiture of shares is not typically applicable at this stage. The company can consider not issuing shares until payment is received, pursuing legal action, or removing and replacing the defaulting subscriber. If the subscriber is no longer part of the company, shares can be issued to new subscribers. Legal compliance requires full payment before filing INC-20A, and consulting a legal advisor may be beneficial for resolving these issues.