What Happens When A Company Voluntarily Delisted. When a company is involuntarily delisted, it is often a bad sign of financial or managerial trouble, and it often causes the stock price to fall. In voluntary delisting, when a company willingly decides to remove its shares from the stock exchange and it pays shareholders to return the shares held by them and removes the entire lot from the exchange.
The delisting of a security can be voluntary or involuntary and usually results when a. The company may be acquired by a private owner out of bankruptcy or be forced. Sometimes, a company will voluntarily delist its shares and make the announcement itself, but other times an exchange will announce that a company no longer meets its listing requirements.