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Procedure of Re-issue of forfieted shares by a Private Ltd Co.

(Querist) 11 December 2008 This query is : Resolved 
Dear All,

A pvt ltd company is issued shares a premium. and forfeited these shares due to non-payment of call money in time.

Now the Company want to re-issue these shares . What is procedure of it ?

Please reply with supporting section asap.

Thanks & Regards


Manish Singh (Expert) 22 December 2008
Dear Mr. Bansal,
the board of directors are having the power to reissue the forfeited shares subject to the articles of association of the compnay. so check the provisions of AoA.

There is no statutory provision for forfeiture of the shares under Companies Act, 1956. However, there is a provision in Chapter VIII of the SEBI(Disclosure and Investor Protection) Guidelines, 2000.
Hiralal Das (Expert) 07 April 2009
Thanks all of you the ld. member and the author.
I think your valuable opinion will assist everybody to solve their problem/matter in question properly.

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