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Forfeiture of Shares

Voluntary ret...

Question

Voluntary return of shares for cancellation by the shareholders is called _______.

A

Surrender of shares

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B

Forfeiture

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C

Cancellation of share

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D

Distribution of shares

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Solution

The correct option is A Surrender of shares
Surrender of shares means voluntary return of shares by the shareholder. Surrender of shares takes place due to inability of the shareholder to pay the call money.

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