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    • Question

      Which of the statements is/are correct relating to the

      nature of shares or debentures of a company?
      A Movable property Correct Answer Incorrect Answer
      B Freely transferrable Correct Answer Incorrect Answer
      C Transfer restricted by the AoA Correct Answer Incorrect Answer
      D Both a & b Correct Answer Incorrect Answer
      E All a, b & c Correct Answer Incorrect Answer

      Solution

      Shares or debentures are legally classified as movable property. Under standard legal principles for public companies, they are considered freely transferable, although private companies may have specific restrictions in their Articles of Association (AoA).

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