In what circumstances may a company accept shares surrendered by a member?

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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