Share Capital - Further Issue ‑ Whether the section covers cases of further allotment out of unsubscribed portion of capital and sale of forfeited shares - Companies Law - Letter : No. 2(27)/56‑PR,

Letter : No. 2(27)/56 PR, dated 4 10 1976. Subject:- Share Capital - Further Issue Whether the section covers cases of further allotment out of unsubscribed portion of capital and sale of forfeited shares Any allotment of unsubscribed portion of issued shares as and where applications are received will not amount to an increase in the subscribed capital of the company by issuing new shares and every allotment of shares within the issued capital is the first allotment so far as those shares are concerned. Section 81(1) is not, therefore, applicable to the remaining shares which were issued already. The said section is also not applicable to the sale of forfeited shares for which no allotment is necessary.