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What are the conditions on which forfeited shares can be re-issued?

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Question

What are the conditions on which forfeited shares can be re-issued?

Short Answer
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Solution

Only when the following requirements are met may the forfeited shares be reissued:

  1. A resolution authorizing the re-issuing of forfeited shares must be approved by the directors.
  2. The amount of arrears on the surrendered shares must be greater than the price that is charged.
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Chapter 6: Company Accounts - Issue of Shares - SHORT ANSWER QUESTIONS [Page 6.148]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 6 Company Accounts - Issue of Shares
SHORT ANSWER QUESTIONS | Q 36. | Page 6.148
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