Forfeiture of shares

(1) The Memorandum or Articles or an agreement for the subscription of shares, of a company incorporated under this Act may contain provisions for the forfeiture of shares for which payment is not made pursuant to a promissory note or other written binding obligation for payment of a debt. (2) Any provision in the Memorandum or Articles, or in an agreement for the subscription of shares, of a company incorporated under this Act providing for the forfeiture of shares shall contain a requirement that written notice specifying a date for payment to be made be served on the member who defaults in making payment pursuant to a promissory note or other written binding obligation to pay a debt. International Business Companies[CAP. 270 31 (3) The written notice referred to in sub-section (2) of this section, shall name a further date not earlier than the expiration of 14 days from the date of service of the notice on or before which the payment required by the notice is to be made and shall contain a statement that in the event of non-payment at or before the time named in the notice the shares, or any of them, in respect of which payment is not made will be liable to be forfeited. (4) Where a notice has been issued under this section and the requirements of the notice have not been complied with, the directors may, at any time before tender of payment, by resolution of directors forfeit and either cancel the shares to which the notice relates or dispose of the same and retain the entire proceeds for the benefit of the company. (5) The company is under no obligation to refund any moneys to the member whose shares have been cancelled or disposed of pursuant to sub-section (6) and that member shall be discharged from further obligation to the company.