If, therefore, the shares which the Company forfeited have to be considered as shares already created and as continuing in existence as such in spite of the forfeiture, obviously they could not be allotted in the sense in which that word is understood in the Company law as we have earlier stated. In Morrison v. Trustees e.tc. Insurance Corporation (1 ), the articles of the Company gave power to forfiet shares for non-payment of calls and further provided that "any share so forfeited shall be deemed to be the property of the Company and the directors may sell, re-allot or otherwise dispose of the same in such manner as they think fit". It was held that the Company could re-issue the forfeited shares giving credit for the money already received in respect of them. The contention that the transaction amounted to the issue of a share at a discount was rejected. Vaughan Williams L. .J. observed, "I do not like the use of the word 'issue' with reference to the transaction 'with regard to these shares. If they were being issued, the argument for the appellant might possibly be right ; but they are not being issued. When we look at the articles we see that what takes place on (ll (114.'1] 2 1,L.R, Cal, 105, (2) [1899]68 L.J. CL 11.
