The process for surrender of shares in a Producer Company as per the Companies Act, 2013 is as follows:
1. Submission of Request for Surrender of Shares
The member who wishes to surrender their shares must submit a written request to the Board of Directors of the Producer Company. The request must state the number of shares to be surrendered and the reason for surrender.
2. Consideration by the Board of Directors
The Board of Directors will consider the request and determine whether or not to approve it. The Board may approve the request if it is satisfied that the surrender is in the best interests of the Producer Company.
3. Determination of Surrender Value
If the Board approves the request, it will determine the surrender value of the shares. The surrender value is typically the par value of the shares, but it may be higher or lower depending on the circumstances.
4. Issuance of Share Surrender Certificate
Once the surrender value has been determined, the Producer Company will issue a share surrender certificate to the member. The share surrender certificate will extinguish the member's ownership of the shares.
5. Update of Register of Members
The Producer Company will also update its register of members to reflect the surrender of the shares.
Additional Points to Note
The Board of Directors may refuse to approve a request for surrender of shares if it is not satisfied that the surrender is in the best interests of the Producer Company.
The member who is surrendering their shares may be required to pay a surrender fee.
The surrender of shares may have tax implications for the member