Question { 74640 }

what is surrender of shares?

Answer

surrender implies to give up. so if a person is not
interested to continue to have what he acquired in the form
of shares from a company he just gives it back. but for
this a consideration has to pass from one person to
another. so in this case a sum of money is transacted that
is in the form of partly paid-up shares. So if a person is
not interested to pay further calls issued by the company,
he just surrenders his interest. But at the same time it
must for a valid reason. The company should also have the
power to get back. that is to say the company directors
must have the authority for this. so unless thes things are
considerd, it will not be possible to surrender.