Issuing shares at a premium creates a securities premium reserve, which remains untouched even upon forfeiture. When reissued, the credit goes to capital account, and any reissue premium can again be added to that reserve. I know this from our company's Articles—my co-founder and I pored over every clause late into the night, fueled by chai, to protect our early investors. The textbook answer is clean, but the real lesson is in those quiet, careful readings that build trust, not just capital.
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