OMTEX CLASSES: FORFEITURE OF SHARES SURRENDER OF SHARES

FORFEITURE OF SHARES SURRENDER OF SHARES




FORFEITURE OF SHARES
SURRENDER OF SHARES
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Meaning
It means compulsory termination of membership by confiscating (take away) shares.


Purpose
Forfeiture is a penalty to member for non-payment of the amount of call.

Difference in Action
It is a compulsory action.

Nature of Shares
Forfeiture is done in case of partly paid shares.


Procedure
The procedure is lengthy in case of forfeiture of shares.




It is return of shares voluntarily by the member to the company.



Surrender is done to cut the long procedure of forfeiture.



It is a Voluntary action.


Surrender is done in case of fully or partly paid shares.



The procedure of surrender is simple and easy