The directors of a company have an authority of reissue of shares once forfeited by them due to non – payment of calls. They can reissue the forfeited shares at par, at premium or at discount. When forfeited shares are reissued at a premium, the amount of such premium will be credited to securities premium. If the reissue price is more than the amount unpaid of forfeited shares it results in profit and is transferred to capital reserve account.
