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Hi mike, I want to ask with regards to the effect of cessation of membership
A valid surrender of shares is what meaning? can having an short explanation?
i am not so certain about it
Thanks Mike“A valid surrender of shares is what meaning”
I don’t think that I have ever heard that expression!
But this is from wikipedia
“Surrender of shares :
The companies act does not provide for surrender of shares.
Shares are said to be surrendered when they are voluntarily given up.
The articles of a company may authorize the directors to accept surrender of shares.
Surrender of shares is valid where it is done to relive the company from going through the formality of forfeiture of shares and the shareholder is willing to surrender the shares.
A surrender and a forfeiture have practically the same effect, the only difference being that the former is done with the assent of the shareholder while the latter is done at the instance of the company.”
I’ve certainly never seen it in any F4 exam. Where did you find the expression?
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