Following are the rules regarding re-issue of forfeited shares:
1. Consent of the Board of Directors The forfeited shares can be sold with the consent of the Board of Directors and these shares can also be liquidated!
2. Amount for re-issue of forfeited shares – The forfeited shares cannot be paid for less than the amount which was due on them, i.e. the amount forfeited by the company. The maximum amount that can be given as deduction to the new shareholders. Were abducted. Shows can be issued at a premium.
3. Passing of Offer – A resolution is passed for re-issue of shares and on the basis of this offer the shares are re-sold.
4. Issue of Share Certificates The company issues certificate of shares to the new shareholder.