Section 37Part 3 — Distribution of Capital and Liability of Members
Surrender of shares
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Amended by LG13/S2
Subject to any express provisions of the company ’ s memorandum or articles of association to the contrary, a company may accept the surrender for no consideration of any fully paid share (including a redeemable share) unless, as a result of the surrender, there would no longer be any issued shares of the company other than shares held as treasury shares.
Subj ect to section 37A , any shares surrendered under subsection (1) shall be treated as cancelled on surrender, and the amount of th e company ’ s issued share capital shall be diminished by the nominal value of those shares accordingly; but the surrender of shares by a member is not to be taken as reducing the amount of the company ’ s authorised share capital.
This section is without prejudice to any right or power of a company arising under this Act or otherwise to accept the surrender of a share (not being a fully paid share) in lieu of forfeiture.