Multiple choice

In which of the following cases, the membership of a shareholder is not terminated?

  1. When his shares are forfeited

  2. When he surrenders his shares

  3. When a shareholder's preference shares are redeemed

  4. When a share certificate is issued

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

 The membership of a shareholder does not come to an end when a share certificate is issued. A share certificate is a certificate which certifies that he is the holder of a specified number of stated shares in the company. 

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