(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.
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A co. can forfeit shares only if a shareholder doesn't pay d call money?? can it b forfeited at allotment stage also if a shareholder makes a default????..............
ReplyDeleteYup it can be but only if the company has made enough efforts to find the person and have also send notice to his registered address
DeleteEmail me your assignments and I will send you back the solutions.
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