what s the difference between forfeiture of shares and surrender of shares
Answers
(1) Surrender of Shares:
Meaning: It is a voluntary return of shares by a member to the company.
Nature of Action: It is voluntary action by the share holder.
Reason: Surrender takes place due to the inability of a shareholder to pay the call money.
Initiative: Initiative is taken by share holder.Time Required: Surrender requires limited time.
Effect: Surrender of shares does not affect the reputation of the shareholder, as it is his own voluntary action.
(2) Forfeiture of Shares:
Meaning: It is compulsory termination of membership, due to non payment of call money on due date.
Nature of Action: It is a compulsory action by the company.
Reason: Forfeiture takes place because of non-payment of call money on the due date.
Initiative: Company is taking the initiative.
Time Required: Forfeiture requires longer time.
Effect: Forfeiture affects the reputation of a share holder, as it is a penal action by the company.
Answer:
Forfeiture of share means share are forfeited by the company
surrender of shares means shares are surrender by the shareholders
Explanation:
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