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Question
Explain the following Term/Concept.
Transmission of Shares
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Solution
(1) Transmission of shares refers to the transferor passing of property or titles in shares by the operation of law from a member to his legal representatives. Such an automatic transfer of shares takes place in the event of death, insolvency, and insanity of a shareholder.
(2) When the transmission of shares takes place, the membership of the original shareholder is terminated. The heir or legal representative in the case of death, the official receiver in the case Of insolvency and administrator in the case of Insanity becomes the member of the company in the Place of original shareholder or member.
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