Question

Consider the following statements regarding share transfer under Section 47 of the Companies Act, 2013: Statement 1: A company can register a transfer of shares if a duly stamped transfer deed is submitted with proper evidence of title. Statement 2: A company can refuse to register a transfer if there is a stop transfer order issued by a competent court. Statement 3: The transferee becomes a member of the company only upon registration of transfer. Statement 4: A transfer deed must be signed by both transferor and transferee. Which statements are correct?

Q: Answer-Consider the following statements regarding share transfer under Section 47 of the Companies Act, 20...

Section 47 prescribes share transfer requirements. Statement 1 is correctstamped transfer deed with title evidence is required. Statement 2 is correctcourt orders can prevent registration. Statement 3 is correctregistration is essential for membership. Statement 4 is partially correct but overstatedwhile both signatures are typically required, Section 47 doesnt mandate both the transferors signature with proper evidence suffices in some cases. Statements 1, 2, and 3 are clearly correct.