[Solved] For the forfeiture of shares, the auditor should check that it is permitted

For the forfeiture of shares, the auditor should check that it is permitted

a) by Memorandum of Association

b) by articles of association

c) under Companies Act, 1956

d) None of the above

Answer: (b) For the forfeiture of shares, the auditor should check that it is permitted by articles of association. The auditor should examine the Articles of the company to see whether it contains provisions authorizing the Board of Directors to forfeit the shares.

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