Question

Voluntary return of shares by shareholders to the company for cancellation is called__________.

• A. Transfer of shares
• B. Forfeiture of shares
• C. Surrender of shares
• D. Buyback of shares

Answer 1

The correct option is C Surrender of shares

Its a short cut of forfeiture of shares. In case of non payment of amount, rather than forfeiting the shares, members or shareholders can surrender the shares.

If a shareholder is voluntary returning the shares, it is called surrender of shares.