Question

FORFEITURE OF SHARES SURRENDER OF SHARES

Answer 1

S.R.	FORFEITURE OF SHARES	SURRENDER OF SHARES
1.	Meaning It means compulsory termination of membership by confiscating (take away) shares.	It is the return of shares voluntarily by the member to the company.
2.	Purpose Forfeiture is a penalty to a member for non-payment of the amount of call.	Surrender is done to cut the long procedure of forfeiture.
3.	Difference in Action It is a compulsory action.	It is a Voluntary action.
4.	Nature of Shares Forfeiture is done in case of partly paid shares.	Surrender is done in case of fully or partly paid shares.
5.	Procedure The procedure is lengthy in case of forfeiture of shares.	The procedure of surrender is simple and easy