Arrange the following steps in correct sequence.

A. Call in Arrears
B. Notice to shareholders
C. Forfeiture of shares
D. Making calls
E. Reissue of shares

Choose the correct answer from the options given below:

D, A, B, C, E

The correct answer is Option (1) - D, A, B, C, E.

The correct sequence of the steps related to the forfeiture and reissue of shares is as follows:

* Making calls (Step D): After the allotment of shares, the company makes a formal call on the unpaid amount of shares, requesting shareholders to pay the amount due.

* Call in Arrears (Step A): If shareholders fail to pay the call amount, the outstanding or unpaid calls become known as "calls in arrears."

* Notice to shareholders (Step B): The company typically issues a notice to shareholders to inform them about payment otherwise there shares will be forfeited.

* Forfeiture of shares (Step C): If the calls in arrears are not paid within the stipulated time, the company may decide to forfeit the shares of the defaulting shareholders. Forfeiture involves canceling the shares and removing the shareholder's rights.

* Reissue of shares (Step E): After the forfeiture of shares, the company has the option to reissue these forfeited shares to new shareholders. This process helps the company recover the value of the unpaid calls.