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:

Correct option is D

Transmission of Shares refers to the transfer of ownership of shares due to operation of law rather than by a voluntary act like a sale.
1. Death: Upon the death of a shareholder, shares are transmitted to the legal heirs.
2. Insolvency: If a shareholder is declared insolvent, the shares are transmitted to the official receiver or assignee appointed by the court.
· Sale is a voluntary transfer of shares and does not fall under transmission.
· Maturity is not relevant in the context of share transmission as shares are not subject to maturity periods like bonds.
Information Booster: Transmission does not involve stamp duty or sale agreements, as it happens automatically by operation of law. The company transfers the shares after the required legal documents are submitted.
Additional Knowledge:
· Common documents required for share transmission include a death certificate, probate, or insolvency order.
· Transmission ensures continuity of ownership while adhering to legal requirements.