Question

Voluntary return of shares for cancellation by the shareholders is called ______.

Options

• Cancellation of shares

• Forfeiture

• Surrender of shares

• None of these

Answer 1

Voluntary return of shares for cancellation by the shareholders is called Surrender of shares.

Explanation:

When a shareholder willingly returns their shares to the business because they are unable to make future payments, this is known as surrender of shares. The business then cancels these shares that were turned in.