In what circumstances may a company accept shares surrendered by a member?
ANSWER
As a general rule, surrender of shares is not authorised by law. This is a situation whereby a member gives up his shares to the company. It is generally not provided for by the articles. However, a company may accept such shares in two circumstances:
• To avoid the formalities of forfeiture
• Fully paid up shares may be accepted in return for shares of the same nominal value.
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