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Question
Explain the following term/concept.
Transmission of shares
Solution
(a) Transmission of shares means the transfer of shares by operation of law, ie shares of a member is automatically transferred to another person.
(b) Transmission of shares happens on a specific event such as death, insolvency, or insanity of shareholders. There is only one party i.e. legal heir who initiate the process of transmission. The legal heir or official receiver need not pay any consideration for the shares. Original liability of the member continues in case of transmission.
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
______ of shares takes place due to operation of law.
Write a word or a term or a phrase which can substitute the following statement.
Transfer of shares due to operation of law.
Complete the sentence.
Transfer of shares due to death, insolvency or insanity of member is called ______
Answer in one sentence.
When does transmission of share take place?
Justify the following statement.
Transmission of Shares takes place due to the operation of law.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ | ||
| (a) | Equity shares | (1) | ______ |
| (b) | Operation of law | (2) | ______ |
| (c) | ______ | (3) | Debenture certificate |
| (d) | Dematerialization | (4) | ______ |
| (e) | ______ | (5) | Oldest stock exchange in India |
[Issued within 6 months of allotment, Physical to electronic mode, Fluctuating rate of dividend, Bombay Stock Exchange, Transmission of shares]
Select the correct option from the bracket and complete the table:
(Prompt reply, Operation of law, Secondary market, Deposits from members, Fluctuating rate of dividend)
| Group 'A' | Group 'B' | ||
| (a) | Equity shares | (1) | ____________ |
| (b) | ____________ | (2) | Transmission of shares |
| (c) | Private company | (3) | ____________ |
| (d) | ____________ | (4) | Secretary |
| (e) | Buying and selling of existing securities | (5) | ____________ |
