On 1^st July 2021, Skyline Limited issued a prospectus inviting the public to subscribe for 7,500,000 ordinary shares at an issue price of $8 for each ordinary share. The terms of the share issue are that the issue price is to be settled $2 on application, $4 on allotment and the balance on a call.

Applications were received for 7,500,000 ordinary shares and all application money was received by 20^th July 2021. The company allotted the 7,500,000 ordinary shares on 1^st August 2021. The amount payable on allotment was received by the due date 14^th August 2021.

The company made a call for the balance of the issue price on 3 September 2021. Amounts due on the call were received for 7,400,000 ordinary shares by the due date 17^th September 2021. A shareholder who was allotted 100,000 ordinary shares failed to settle the call money.

On 10^th October 2021 the management of the company decided to forfeit the 100,000 ordinary shares from the defaulting shareholder. The forfeited shares were reissued on 20^th October 2021 at a price of $7.40 per share to be paid for in full on application. The reissued shares were taken up by a shareholder who paid for the shares on the due date 30^th October 2021.  On 15^th November 2021, the company refunded the amount paid by the defaulting shareholder after charging a penalty for the difference between the original issue price and the reissue price.

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