REDEMPTION OF PREFERENCE SHARES
If shares are not fully paid up, company will redeem shares only when it is fully paid up but while forfeiting the shares they cancel it instead of reissuing since the redemption due in near future.......why does the same forfeiting concept does not apply when the shares are not fully paid up??
It may so happen that company itself has not called up part money and hence, shares are not fully paid up. So, law says all calls must be made up and shares fully paid up before redemption. In case of forfeiture, it's the shareholder's default and hence shares are forfeited and cancelled.