Question
Write the difference between share forfeiture and share lien.
| Point of Difference | Share Forfeiture | Share Lien |
| Meaning | For the last installment, the amount received on the shares will not be cleared. | When a shareholder does not pay the share installment money to the company, the share sale which is given to the company in respect of the shareholder or occupation of the property, in particular, is known as share lien. |
| The right of the Dividend. | The shares lost on the member share and the rights of the dividends lost by share forfeiture. | Use of this right can be used to prevent suffrage, share transfer dividend, bonus share rights. |
| Provision | It can be used only after checking the provisions of the regulation. | No special provision is required because of this special right. |
| Re issue of the share | After the share forfeiture, the company may be able to re-issue the forfeited shares in the capital. | Shares are already sold in the share lien so that the question of issuing shares does not arise. |
| Resolution | It is necessary to pass a resolution in the meeting of the Board of Governors for share forfeiture. | There is no requirement of resolution in the share lien, because it is a special right by definition. |
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