What is the minimum price at which a company can reissue its forfeited shares which were originally issued at par?
Answers
Determination of reissue price of forfeited shares, which were originally issued at par, rests with the company that issued it. It may decide to reissue such shares once again at par, at premium or at a discount.
If it is reissued at a discount, the reissue price is usually fixed by taking into consideration the amount that has been paid up before forfeiture.
The company may also decide to cancel shares that are forfeited.
The Company can reissue its fortified shares at par, at premium or at discount but the reissue price together with the amount already received on such shares should not be less than the called up amount on each share. For example, if the forfeited shares are reissued at a discount, the amount of discount should not exceed the amount already paid by the defaulter.