Paragraph 61 Procedure following forfeitureI1
United Kingdom
If a forfeited share is to be disposed of by being transferred, the company may receive the consideration for the transfer and the directors may authorise any person to execute the instrument of transfer.
A statutory declaration by a director or the company secretary that the declarant is a director or the company secretary and that a share has been forfeited on a specified date—
is conclusive evidence of the facts stated in it as against all persons claiming to be entitled to the share, and
subject to compliance with any other formalities of transfer required by the articles or by law, constitutes a good title to the share.
A person to whom a forfeited share is transferred is not bound to see to the application of the consideration (if any) nor is that person’s title to the share affected by any irregularity in or invalidity of the process leading to the forfeiture or transfer of the share.
If the company sells a forfeited share, the person who held it prior to its forfeiture is entitled to receive from the company the proceeds of such sale, net of any commission, and excluding any amount which—
was, or would have become, payable, and
had not, when that share was forfeited, been paid by that person in respect of that share,
but no interest is payable to such a person in respect of such proceeds and the company is not required to account for any money earned on them.
Annotations
Commencement
- I1
Sch. 3 art. 61 in force at 1.10.2009, see reg. 1