Question

Assertion: When a shareholder defaults in making payment of allotment/call money,shares may be forfeited

Reason: Shares forfeited can be reissued at par,discount or premium​

Answer 1

Explanation:

When a shareholder defaults in making payment of allotment/call money, the shares may be forfeited. On forfeiture the share allotment is cancelled and to that extent, paid up share capital reduced.