Question
Transmission of shares is effected by which of the following?
A. Sale
B. Death
C. Insolvency
D. Maturity
Choose the correct answer from the options given below:
The correct answer is
B & C Only
Transmission of Shares Explained
Transmission of shares refers to the transfer of ownership of shares by operation of law, rather than by a voluntary agreement between parties. This occurs in specific circumstances like the death or insolvency of a shareholder.
Analyzing Modes of Share Transmission
Let's examine how each option relates to the transmission of shares:
- Sale (A): A sale involves a voluntary agreement between the buyer and seller. This is considered a transfer of shares, not a transmission.
- Death (B): When a shareholder dies, their shares legally pass to their legal heirs or legal representatives. This happens automatically by law and is a primary example of share transmission.
- Insolvency (C): If a shareholder is declared insolvent, their shares vest in the Official Assignee or Receiver. This transfer of rights occurs by operation of law, making it a form of share transmission.
- Maturity (D): The concept of 'maturity' is not typically associated with the transmission of shares. Shares usually don't 'mature' in the way a bond or deposit does. While certain share classes might have redemption provisions, it's not a standard mode of transmission like death or insolvency.
Conclusion on Share Transmission
Based on the analysis, the transmission of shares is primarily effected by the shareholder's death (B) and insolvency (C), as these events cause the shares to pass by operation of law.
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Important Questions from The Companies Act, 2013 - Teaching
- Arrange the following steps for the Incorporation of a new LLP (Limited Liability Partnership) in the correct order -
A. Drafting of LLP Agreement
B. Deciding the partners and designated partners
C. Electronic filing of documents with ROC & issuing of Certificate of Incorporation by ROC (Registrar of Companies)
D. Checking the availability of Name
E. Obtaining DPIN & Digital Signature Certificate
Choose the correct answer from the options given below: - Which of the following section of Companies Act, 2013 deals with amalgamation, absorption and reconstruction?
- Which of the following is the most frequently held meeting of a company?
- Arrange the following process of incorporation of a new LLP in proper sequence.
A. Reserve LLP name
B. Procure Digital Signature Certificate
C. Prepare documents for incorporation of LLP
D. LLP incorporation and DIN Application
E. Drafting and Filling LLP Agreement
F. Apply for PAN and TAN
Choose the correct answer from the options given below: - The liquidator after realizing the assets of the company should distribute the proceeds among below mentioned claimants in which order?
A. Liquidator's remuneration and cost of expenses of winding up.
B. Legal charges
C. Claims of secured creditors
D. Preferential creditors and creditors secured by floating charges
E. Unsecured creditors
Choose the correct answer from the options given below:
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