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Justify the following statement. Transfer of shares results in termination of membership. - Secretarial Practice

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प्रश्न

Justify the following statement.

Transfer of shares results in termination of membership.

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उत्तर

(1) Transfer of shares refers to the passing of ownership and possession of shares from a shareholder to another person by way of sale or gift. The shares cannot be transferred by mere delivery.

(2) The transfer of shares is affected by registering an instrument called ‘Instrument of Transfer’ with the company. When the company approves of the transfer, the Secretary strikes off (cancels) the name of the seller (transferor) from the Register of Members, and thus the membership of the shareholder who has transferred the shares is terminated.

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Members of a Company
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अध्याय 5: Members of a company - Exercise Q.5 [पृष्ठ ७५]

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बालभारती Secretarial Practice [English] 11 Standard Maharashtra State Board
अध्याय 5 Members of a company
Exercise Q.5 | Q 9 | पृष्ठ ७५

संबंधित प्रश्न

Select the correct answer from the options given below and rewrite the statement:

________ is a person whose name is entered in the Register of Members.


Select the correct answer from the options given below and rewrite the statement:

A person can be called as a Member when the name is entered in ________


Match the pairs:

Group ‘A’ Group ‘B’
a) Insane person 1) Transfer of shares by operation of law
b) Foreigner 2) Cannot be a member
c) Transmission of shares 3) Cessation of membership
d) Surrender of shares 4) To get copies of Auditor’s, Directors’ Report, etc.
e) Right of Members 5) Can be a Member
  6) To attend a board meeting
  7) Duties of member
  8) Surrendering all assets to the company
  9) Demand or claim money from the company
  10) Transfer of shares by order of Secretary

State whether the following statement is True or False:

Buying shares is the most common way to become a Member of the company.


State whether the following statement is True or False:

Members of the company can attend general and Board meetings of the company.


State whether the following statement is True or False:

Minor can be the member of the company


State whether the following statement is True or False:

Karta of HUF can be a member of the company.


Find the odd one:


Complete the sentence:

A person whose name is entered in the Register of Members of a company is called __________


Complete the sentence:

In case of death or insolvency of a member, he will cease to be a __________


Complete the sentence:

Members have a right to appoint and remove the __________


Answer in one sentence:
What is the common way of becoming a member of a company?


Correct the underlined word and rewrite the following sentence:

Partnership Firm can be a member of a company.


Explain the following Term/Concept.

Transmission of Shares


Justify the following statement.

A Foreigner can invest in shares of an Indian company.


Justify the following statement.

Members of the company have some fundamental corporate decision-making rights.


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