SURRENDER OF SHARE

In the context of company law in India, the surrender of shares refers to the
process by which a shareholder willingly gives up or returns their shares to
the company. The surrender of shares can occur for various reasons, and
the procedure for surrender is typically governed by the company's Articles
of Association and the relevant provisions of the Companies Act, 2013.

Here are the key steps and considerations involved in the surrender of
shares in India:

1. Check the Articles of Association:

 The company's Articles of Association outline the procedures
and conditions for surrendering shares. It's important to review
these provisions to understand the specific requirements and
restrictions.
2. Shareholder Resolution:
 In many cases, the surrender of shares requires the passing of a
special resolution by the shareholders. The resolution may need
to be approved by a specified majority during a general
meeting.
3. Board Approval:
 The board of directors typically needs to approve the surrender
of shares. They may review the request and ensure that it
complies with the company's rules and regulations.
4. Surrender Request:
 The shareholder intending to surrender their shares must
formally communicate their intention to the company. This is
often done by submitting a written request to the board of
directors.
5. Valuation of Shares:
 The valuation of the shares being surrendered may be required.
This is to determine the fair value of the shares being returned
to the company. The method of valuation may be specified in
the Articles of Association.
6. Cancellation of Shares:
  Once the surrender is approved, the company typically cancels
the surrendered shares. This may involve updating the
company's records and making the necessary filings with
regulatory authorities.
7. Payment or Settlement:
 The surrender may involve a settlement or payment to the
shareholder. The terms of the settlement, if any, should be
clearly outlined in the surrender agreement or resolution.
8. Registrar of Companies (RoC) Notification:
 The company may need to file the necessary documents with
the Registrar of Companies to inform them about the surrender
of shares. This ensures that the company's records are updated.
9. Transfer of Ownership:
 If the surrendered shares were in physical form, the shareholder
may need to endorse and deliver the share certificates to the
company. In the case of dematerialized shares, the electronic
records are updated accordingly.

It's crucial for both the company and the shareholder to follow the legal
procedures outlined in the Companies Act and the company's Articles of
Association to ensure that the surrender of shares is valid and legally
binding. Seeking legal advice and consulting with professionals experienced
in company law is advisable to navigate the process correctly.