Transmision of shares

NOMINATION AND TRANSMISION OF SHARES.

NOMINATION OF SHARES:

SINGLE HOLDER:

Every holder of shares in or holder of debentures of, a company may, at any time, nominate aperson to whom his shares in,or debenturesof,the company shall vest in the event of his death. the nomination will be in the prescribed manner.

JOINT HOLDER:

Where the shares in, or debentures of a company are held by more than one person jointly, the joint holders may together nominate a person to whom all the rights in the shares or debentures of the company shall west in the event of death of all the joint holders.


LIEN OF SHARES:

Lien means a right to retain possession of some property of another until some claim attaching to it is settled. the right of lien on shares is not conformed on a company by the statue. it must be clearly provided for in the articles of association.

loss of lien:

A company loses lien if-it register a trnsfer of shares subject to the lien of the transferee.

A company member pledges his shares to a third party as security for a loan and the company has notice thereof, and then incures a liability to the company.