Forfeiture of shares can occur when some of the shareholders are unable to pay one or more of the installments, which can be allotment money or call money. In such situations, the company can forfeit the shares, which is cancelling their allotment.
After the shares are forfeited, the company can re-issue the shares, in this case it is known as re-issue of forfeited shares or reissue of shares.
For reissue of shares, the company can conduct an auction and dispose of the shares.The shares can be reissued at any price, but there is a clause, it states that the total money received on shares should not be less than the price of shares held in arrears.
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Forfeiture of shares can occur when some of the shareholders are unable to pay one or more of the installments, which can be allotment money or call money. In such situations, the company can forfeit the shares, which is cancelling their allotment.
After the shares are forfeited, the company can re-issue the shares, in this case it is known as re-issue of forfeited shares or reissue of shares.
For reissue of shares, the company can conduct an auction and dispose of the shares.The shares can be reissued at any price, but there is a clause, it states that the total money received on shares should not be less than the price of shares held in arrears.
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