Reissue of forfeited shares
The Directors of a company have the right to reissue the shares that were forfeited by them already as and when they find it suitable
and convenient. In this connection the following points need to be noted.
Reissue Price:
Forfeited shares can be reissued at any price the company prefers. But the reissue price plus amount already collected from the defaulting member should not be less than the amount credited as paid up on reissue of shares.
When shares are fully paid: If a share of Rs.10 (face value) on which Rs.3 has been already been collected is now forfeited then the
minimum reissue price should be Rs.7 (Rs.10 – Rs.3).
When shares are partly paid: In the above example if the company has called only Rs.8 then the minimum reissue price should be Rs.5 (Rs.8 – Rs.3).