OTHER MATTERS RELATING TO SHARES o5 
Court of Appeal granted an injunction subject to payment into 
Court of £500, the amount due on the shares being £3,850. 
Closely akin to the subject of forfeiture is that of the 
surrender of shares. The law upon this subject was for some 
considerable time thought to have been authoritatively 
settled by the Court of Appeal and to be as summarised in the 
following extract: ‘Every surrender of shares, whether fully 
paid up or not, involves a reduction of capital, which is un- 
lawful, except when sanctioned by the Court under the 
Companies Acts of 1867 and 1877. Forfeiture is a statutory 
exception, and is the only exception. For I regard a sur- 
render, under circumstances which would justify a forfeiture, 
as merely equivalent to a forteiture’ [per Cozens-Hardy,.L]., 
in Bellerby v. Rowland and Marwood Steamship Co. (1902) 
2 Ch. 14, at p. 32]. 
A surrender of shares already liable to forteiture had been 
held to be valid [Trevor v. Whitworth (1887), 12 A.C. 409]; 
and since a company could not prior to 1st November, 1929, 
in any circumstances issue its shares at a discount [Ooregum 
Gold Co. v. Roper (1892), A.C. 125], the principle was in- 
volved that a company could not by any device relieve a 
shareholder from the liability to pay the full amount due 
on his shares [Bellerby v. Rowland & Marwood Steamship 
Co. (above)]. 
But it has been held by Warrington, J., that, where a 
company has power by its articles to accept a surrender of old 
shares in exchange for new, fully paid shares may be validly 
surrendered, and new shares of the same nominal value 
issued as fully paid to the holder in exchange [Rowell v. 
John Rowell & Sons (1912), 2 Ch. 609; in which case the 
surrendered shares were not cancelled, but were subject ° 
be re-issued by the company]. 
The important subject of the payment of commissions on 
the issue of shares is dealt with in s. 43 of the Act, to which 
reference may be made. The interpretation of the section 
is in some respects difficult, but it is believed that the following 
is a correct summary of the present law as to the payment 
of underwriting commissions, both by the company and by 
vendors and promotors: 
I. By the Company.— 
(1) Where there is a public issue. 
The following conditions must be complied with: 
(a) The articles either as originally framed, or as altered 
by special resolution must authorise payment of the 
commission 
sR 
Surrender. 
Underwriting 
Nfommissions.