Share forfeiture is the process by which the directors of a company cancel the power of shareholder

Shareholder

A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....

 if he does not pay his call money

Call money

Call money is a short term loan made by a bank to a borrower, where unlike the more usual kinds of loan, which are for a set term, and with a payment schedule, call money is repayable on demand. Call money is used by large financial institutions in the short-term money market to obtain funds...

 when the company demands for it. Company will give 14 days notice, after 14 days if shareholder did not pay then company will forfeit his shares and cut off his name from the register of shareholder. Company will not pay his received funds from shareholder. In order to do a share forfeiture the Articles of Association

Articles of Association

The Continental Association, often known simply as the "Association", was a system created by the First Continental Congress in 1774 for implementing a trade boycott with Great Britain...

of the company should contain provision for that.