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      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?
      A Statements 1, 2, and 3 only Correct Answer Incorrect Answer
      B Statements 1, 2, 3, and 4 only Correct Answer Incorrect Answer
      C Statements 2 and 3 only Correct Answer Incorrect Answer
      D Statements 1 and 4 only Correct Answer Incorrect Answer
      E Statements 1 and 3 only Correct Answer Incorrect Answer

      Solution

      Section 47 prescribes share transfer requirements. Statement 1 is correctโ€”stamped transfer deed with title evidence is required. Statement 2 is correctโ€”court orders can prevent registration. Statement 3 is correctโ€”registration is essential for membership. Statement 4 is partially correct but overstatedโ€”while both signatures are typically required, Section 47 doesn't mandate both; the transferor's signature with proper evidence suffices in some cases. Statements 1, 2, and 3 are clearly correct.

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