When a forfeited share parcel is re-issued

Question

Quizplus · Accepted Answer

When a forfeited share parcel is re-issued, the shares must be paid up to at least the amount that existed prior to the forfeiture. This means that any outstanding payments or debts must be settled before the shares can be re-issued. Option A is incorrect because re-issued shares can be offered to new shareholders as well. Option C is incorrect because any profit on sale of the reissued shares belongs to the company, not the original holder. Option D is incorrect because the profit does not always have to be kept by the company; it can be used for various purposes such as reinvestment or dividend payments.

When a Forfeited Share Parcel Is Re-Issued