Question

What is the maximum amount of discount at which forfeited shares can be re-issued?

Answer 1

The maximum amount of discount that can be allowed at the time of reissue depends upon the following two circumstances:
1. If the forfeited shares were originally issued at par or at premium, then these forfeited shares can be reissued with the maximum discount equal to the amount received (or paid by) the original shareholder.
2. If the forfeited shares were originally issued at discount, then these forfeited shares can be reissued with the maximum discount equal to the amount received (or paid by) the original shareholder plus discount allowed at the time of original issue.