Question

In the case shares, of transmission of shares, the company secretary is required to check ______________________.

• A. The 'letter of request' is submitted by the executor
• B. Whether the transfer of shares submitted by the administrator is duly stamped
• C. The deed of settlement is between the pairs
• D. If everything is in conformity with the order of the Central Government

Answer 1

The correct option is D If everything is in conformity with the order of the Central Government

Transmission of shares means the transfer of shares to the representative of the deceased shareholder. In order to carry out this work, the company must ensure that the things are done as per the rules and orders stated by the Central Government.

The central government of India along with SEBI has laid down several terms and conditions like transfer of share will only take place when a member's death has been certified and his representative is agreed for every step in transmission and many more. But only the central government looks after the transmission procedure as SEBI has a wide role in the share market than share transfer.