Ans. This statement is
False.
1. When a member sells
or gives his shares to another person voluntarily, it is known as transfer of
shares. Transfer of shares is a voluntary act on the part of the shareholder.
2. The shares cannot be
transferred by mere delivery. The transfer has to be place in the manner as
specified in this respect. The transfer is effected by registering an
instrument called ‘Instrument of Transfer’ with the company.
3. The application for
transfer of shares may be made in the prescribed printed form either by the transferor
or by the transferee. Such transfer instrument or form must be signed by the transferor,
transferee and a witness. Such duly filled in form, stamped and signed must be
submitted to the company’s office along with original share certificate.
4. In respect of
transfer of partly – paid shares, a notice must be given by the company to the
transferee mentioning therein that the shares to be transferred are partly paid
up.
5. If an application for
transfer of partly – paid shares is made by the transferee, such a notice is
not required to be given by the company to the transferee.