Transmission of shares takes place (i) when the Registered shareholder dies or (ii)
when he is adjudicated an insolvent; or (iii) if the Shareholder is a company, it goes into liquidation.
On the death of a shareholder, his shares vest in his legal
representative. The legal
representative can sell the shares without being registered,
if he does not wish to be registered as
a member of the company. But subject to the provisions of the Articles, he is
entitled to be put on the register of Members, if he so desires. For this purpose,
the company is bound to accept production of Probate or Letter of Administration
or Succession Certificate as sufficient
evidence of his title. In case the legal representative elects to become a
member, he must send a written and
signed notice, called Letter of request, to the company notifying his decision.
If he elects to transfer, he shall notify the election after executing a
transfer of the shares. All rules relating to the right of transfer and registration
of transfer will apply to such notice and transfer.
On the insolvency of a shareholder, his shares vest in the official Assignee or official Receiver,
who can sell and transfer the shares or to
get himself registered as a member
No comments:
Post a Comment