FORFEITURE OF SHARES
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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.
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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
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FORFEITURE OF SHARES SURRENDER OF SHARES
