(1) Stockholders who fail to make payment, in due time, of the amount called in may be granted a period of grace, while being warned that, once the time limit has expired to no avail, their shares of stock will be declared forfeited, as will the amounts they have paid in.
(2) Notice of the period of grace must be given thrice in the company’s publications of record. The first notice must be published at least three months, the last at least one month prior to expiry of the period of grace. A minimum period of three weeks must lapse between each of the individual notices. Where the transfer of the shares of stock is bound to the consent of the company, it will suffice, instead of publishing the notices, to send a single call letter individually addressed to the defaulting stockholders; in the process, a minimum period of grace must be granted amounting to one month from receipt of the call letter.
(3) The shares of stock held by stockholders who, despite the above measures, fail to pay in the amount called, as well as the amounts they have paid in, will be declared forfeited to the benefit of the company by notice in the company’s publications of record. The notice published is to list the shares of stock that have been forfeited along with their distinctive features.
(4) Instead of the old share certificates, new ones will be issued; these are to set out, besides the partial payments made, the amount in arrears. Should the company fail to make payment in this amount or in the amounts called in at a later time, the expelled stockholder will be liable to the company for these amounts.