Transfer and Transmission of Shares - Topic 7

Select the correct options.

Voluntarily giving away one’s share to another person is called as ________ of shares.

• transfer

• transmission

• surrender

Answer explanation

When a shareholder voluntarily passes ownership of share to another person, in accordance with the Provisions of Companies Act and Articles of Association, it is called transfer of shares.

Select the correct options.

__________ of shares takes place due to operation of law.

• Forfeiture

• Allotment

• Transmission

Answer explanation

When the ownership of share is transferred compulsorily, under any law, then such a transfer is known as Transmission of Shares.

Give a word or a term or a phrase.

Person to whom transferor is transferring the shares.

Give a word or a term or a phrase.

Transfer of shares due to operation of law.

State whether true or false.

Transmission of shares takes place due to operation of law.

• 
• 

Answer explanation

Shares are to be transferred under the operation of law when the shareholder is declared to be of unsound mind or insolvent or in case of death.

State whether true or false.

The member transferring shares is called as transferor.

• 
• 

Complete the sentence.

Transfer of shares due to death, insolvency or insanity of member is called _________.

Complete the sentence.

The two parties involved in transfer of shares are transferor and ___________.

Complete the sentence.

In case of transfer of shares, company has to issue to the transferee a new share certificate within ___________.