When the shares are transferred under the operation of law it is called transmission of shares:
Transmission of shares takes place:-
(i) When the registered shareholder dies.
(ii) When he is declared insolvent.
(iii) In case where the shareholder is the company, it goes into liquidation.
In case of the death of registered shareholders, his legal representative becomes the care taker of the shares. The legal representative if he can sells the shares without being registered, if he does not want to become the member of the company. In case he wants to become the member of the company, he should send a written and signed notice to the company disclosing his decision.
In case of the insolvency, the official assigner has the power to take the decision regarding selling of the shares, transferring of the shares or getting himself registered as a member.
In case where a shareholding company goes into liquidation then the liquidator of the company may sell and transfer the shares.
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