Question

Surrender of fully paid shares amount to ____________

Answer 1

Answer:

Answer: ADVERTISEMENTS: (1) Each share shall be subdivided into ten fully paid equity shares of Rs 10 each. (2) After such subdivision, each shareholder shall surrender to the Company 90% of his holding, for the purpose of re-issue to debenture holders and creditors so far as required, and otherwise for cancellation

Answer 2

Answer:

Surrender of fully paid shares amount to CRR

Explanation:

1) Each share shall be subdivided into ten fully paid equity shares of Rs 10 each.

(2) After such subdivision, each shareholder shall surrender to the Company 90% of his holding, for the purpose of re-issue to debenture holders and creditors so far as required, and otherwise for cancellation

The Capital Reduction Account is a temporary account opened in order to carry out the internal reconstruction. When the scheme is carried out, the account is closed. The Capital Reduction Account represents the sacrifice made by the Shareholders, Debenture-holders, Creditors etc.

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