Question

Can the company re-issue the forfeited shares at a price lower than the original issue price?

• A. Yes, the company can issue at a lower price.
• B. No, the company can't.
• C. Yes, the company can issue subject to some conditions
• D. None of these

Answer 1

The correct option is A

Yes, the company can issue at a lower price.

Yes, the company can re-issue the forfeited shares at a price lower than the original issue price but the loss on re-issue cannot exceed the amount already received