Who is the initiator in forfeiture of shares of a company?

Company

Forfeiture and surrender of shares are discrete concepts that produce entirely different results. In forfeiture, the company initiates the proceedings. In surrender, it is the shareholder who is the initiator.Forfeiture of shares refers to the situation where the allotment of shares is cancelled for the shareholders due to non-payment of any installments. In contrast to that, surrender of shares takes place when shareholders return the shares to the company for cancellation. Surrender of shares is a short cut procedure in order to avoid the forfeiture of shares. Shares that have the possibility of being forfeited due to defaulting in payment can be voluntarily surrendered by the shareholders. Such a surrender of shares can be accepted by the company if there is any provision for such an arrangement in the Articles of Association (AoA) of the company.