https://www.taxtmi.com/caselaws?id=98786 Articles of association may validly permit forfeiture of a member's fully paid-up share for specified breaches of membership obligations where the governing statute does not prohibit it. Such forfeiture does not constitute an unlawful capital reduction if the share is retained only for re-disposal. Adequate notice and a genuine opportunity to contest complaints and committee proceedings are required to satisfy natural justice. On disposal of a forfeited share, the association may recover enforceable liabilities or reasonable compensation but cannot retain any surplus; the balance remains payable to the member after adjustment, with interest where directed. en-us Fri, 25 Sep 1970 00:00:00 +0530 Tue, 31 Oct 2017 15:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98786 Articles of association may validly permit forfeiture of a member's fully paid-up share for specified breaches of membership obligations where the governing statute does not prohibit it. Such forfeiture does not constitute an unlawful capital reduction if the share is retained only for re-disposal. Adequate notice and a genuine opportunity to contest complaints and committee proceedings are required to satisfy natural justice. On disposal of a forfeited share, the association may recover enforceable liabilities or reasonable compensation but cannot retain any surplus; the balance remains payable to the member after adjustment, with interest where directed. Case-Laws Companies Law Fri, 25 Sep 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98786