Issue of Shares — Secretarial Practice STD 12 Commerce / Arts — Question
Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsSecretarial PracticeIssue of Shares4 Marks
Question
What is Transfer of Shares?
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Answer
Transfer of shares means the transfer of ownership of the shares from one person to another against consideration.
Transfer of shares is effected by removing the name of the existing shareholders (transferor) from the register of members and inserting the name of the new member (transferee).
Transfer of shares is a voluntary process of transferring shares by a member of a company.
A member may transfer the shares for consideration or give them away as a gift.
In the case of public companies, shares are freely transferable subject to the provisions of the Articles of Association.
In the case of private companies, there are restrictions on the free transfer of shares.
A member has to apply to the company for the transfer of shares by filling the ‘Instrument of Transfer’ and submit the share certificate along with the required transfer fees.
A member who is transferring the shares is called a Transferor and to whom the shares are to be transferred is called Transferor.
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