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Question
FORFEITURE OF SHARES SURRENDER OF SHARES
Answer in Brief
Solution
| 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 |
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