Consider the following statements: Assertion (A): If a shareholder fails to pay the amount of one or more calls on his shares, the company may forfeit his shares. Reason (R): Even after the forfeiture of shares, that shareholder is responsible to pay the amount due from him until the company receives full amount on those shares. Now select your answer:

The correct answer is: A. Both A and R are true and R is the correct explanation of A.

Assertion (A) is true because, according to the Companies Act, 2013, a company may forfeit the shares of a shareholder who fails to pay the amount of one or more calls on his shares.

Reason (R) is also true because, even after the forfeiture of shares, the shareholder is still liable to pay the amount due from him until the company receives full amount on those shares.

R is the correct explanation of A because it provides the reason why a company may forfeit the shares of a shareholder who fails to pay the amount of one or more calls on his shares.

Here is a more detailed explanation of each option:

• Option A: Both A and R are true and R is the correct explanation of A. This is the correct answer because, as explained above, both A and R are true and R is the reason why A is true.
• Option B: Both A and R are true but R is not the correct explanation of A. This is not the correct answer because, as explained above, R is the correct explanation of A.
• Option C: A is true but R is false. This is not the correct answer because, as explained above, R is true.
• Option D: A is false but R is true. This is not the correct answer because, as explained above, A is true.