Re-issue of shares Hey guys, Welcome back!!!!! Do you want to know about re-issue of shares? If Yes!!!! Then this article is for you...This article will surely help you to build your understanding into shares. Sounds good???...... Great!!!! Now listen carefully…… Re-issue of shares: In the previous article “forfeiture of shares”, we have learnt how company forfeits its shares. Now if we are talking about Re-issue, then it means re-issue of the forfeited shares by the company to the public. It simply means due to forfeiture, the forfeited shares become the property of the company and the company has got the right to re-issue it to public. Company can re-issue it at par, at discount or at premium. Some Important things to be remember at the time of re-issue: 1) If company re-issue the forfeited shares which were partly called up before the forfeiture , then the Share Capital Account will be credited with that partly called up amo
Hey guys, Welcome back!!!! Do you ever hear the word forfeiture? Do you want to know about it? Then this article is for you… I will explain the forfeiture of shares in detail. Let’s get started……… I have discussed about shares in my previous articles. I have told you that company may claim share money in parts or in lump sum. If company claims money in parts, and shareholder fails to pay any call then company may forfeit his shares. This forfeiture of share means cancellation of shares for non-payment of call money due. It means company will cancel these shares due to non-payment of calls. This cancellation of shares will be known as “ forfeiture of shares ”. Now company will not refund any amount which it has received from shareholders. It will be receipt on the part of company. However, shares can be forfeited only if the AOA of the company allows forfeiture. And company must give 14 days’ notice to the defaulting shareholder so that he can pay