The Transfer Instrcment, contract made between the tranferer, instrument

The Transfer Instrcment is an authority go en to the transferor- to strike offhls name from the Register of member and enter the name of the transferee in his place The transferor thus transfers all his rights to the Lransferee by
- executing the transfer instrument and delivermg the same to the company either personally or through the transferee or tlirough lus agent After the transfer has been given effect to (l) the transferor ceases to be the member, (ii) the transferor transfers the right of distend Lo the Lransferee, (iii) the transferor transfers his Lability of calls to be rr.ade in future by Uhe company on the shares transferred, and
(iv) the company has no right to make any interfere f ce in the contract made between the tranferer and the transferee in regard to die transfer
I-'fowever, the company recognises only that person whose name is there in the Regisier of Members f..ence before registration of transfer instrmnent if dividend is declared the 1ransferer has full right to receive the same
: LEGAL CONDITiONS OF TRANSFER
Section 108 of the Act lays down the following conditions to make the transfer of shares valid:
1 The transfer instrument must he signed by both transferor and Uhe transferee and it must he stamped and dated
- 2 The transfer instruct nt must be delivered to the erp office of the company from the transferee within tw o weeks from the date of notice if the compamy does not strict adhere to this provision the transfer shall become invalid
SECRETARUL DUTIES IN CONNECTION WITH THE TRANSMrSSSoCF
The secretarial duties in the connection ith the transmission of may be enumerated as follows: I. First of an, the secretary has to check up that the Letter of Request
recervedbythecomplyisaproperone. B! the LetterofReqnest theEenrtor or Administrator is to request the company to register his name in place of the deceased subject to the conditions on which the deceased held those
2. He has then to ensure that satisfacto Typroofoftitle lies been attached to the Letter of Reqoest'. Ths secretary should see that the legal representative of the deceased has produced the ' Letter of Probate' if the member had died testate, ne., leaving a will,' or the ': Letter of Administration' if the member has died mtestate. In the case of bankruptcy of members, his estate is vested m the Official Receiver or Assignee appointed by the Court and in the case of lunacy of a member, his estate is vested in the Admimstralor or Guardian appointed by the Court. The secretary must see that the Official Receiver or the Administrator, as the: case may be, has produced documentary proof of f heir appointment from a competent Court.
3. If the legal representative of the deceased elects to transfer the shares he will have to follow the usual procedure of transfer of shares, with the difference that he will be required to attach any 'Probate,' 'Succession Certificate e of ' Letter of Adrninistration,' with the instrument of transfer ' On receipt of a proper'instrumentoftransfer'theduties of the secretary a ith regard to registration of transfer are The Saune as seen earlier m connection with the Transfer of Shares
4: Finally, the secretary should convene a Board meeting to pass the necessary resohition and thereafter lie should introduce necessary alteration In the share certificates and the Register of Members. He should also enter the contents of the Probate, Letters of Administration and Succession Certrhcates m the Register of Probates.