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      Question

      What is the requirement for transferring shares, along

      with any special rights, to an active Member of a Producer Company as per the Companies Act?
      A Shares can be transferred freely without any prior approval Correct Answer Incorrect Answer
      B Transfer must be made at a discounted value approved by a director Correct Answer Incorrect Answer
      C Shares can be transferred only if the company is facing financial difficulties Only if the transferring Member holds a significant percentage of the company's total shares Correct Answer Incorrect Answer
      D Only if the transferring Member obtains previous approval of the Board Correct Answer Incorrect Answer

      Solution

      Section 378ZD. Transferability of shares and attendant rights: (2) A Member of a Producer Company may, after obtaining the previous approval of the Board, transfer the whole or part of his shares along with any special rights, to an active Member at par value.

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