TRANSFER AND TRANSMISSION OF SHARE. — SPCC STD 12 Commerce — Question

Circumstances for compulsory transfer of shares :
(1) Will is not Prepared (Intestate) and there are Legal Successors : Sometimes shareholder has not prepared will (intestate) and he expires then the shares in his name are transferred to successor on the basis of the succession certificate.
(2) Will is not Prepared (Intestate) and there are no Legal Successors : Many a times, shareholder has not a prepared a will (intestate) and he has no successor and he expires. In this situation the court many appoint administrator (receiver) who, then has the right to conduct the court may appoint administrator (receiver). Then receiver may transfer the shares in his name.
(3) Shareholder Declared to be Insolvent : When shareholder is declared to be insolvent by court an official receiver or assignee is appointed by court. The shares are transferred the name of the official or receiver. For this, the receiver has to present an appointment letter given by the court.
(4) Shareholder Declared to be Lunatic : When a shareholder is declared to be lunatic (of unsound mind), a guardian or trustee is appointed by the court. Such a guardian or trustee presents the appointment letter issued by court to the company. After receiving such a letter the shares are transferred to the name of this administrator.
(5) Death of a Person, in Case of Single Person Company : On the death of the sole member, the person nominated by such member shall be the recognized by the company, and the company will transfer all the shares of that member. A legal representative has the right to get dividend and other privileges. However such a representative cannot participate in meeting of the company. He cannot utilize rights which are given to shareholder.