Transfer of shares or debentures can be something common in a company, and it must be properly recorded. According to Section 102 in Companies Act 2016, the company’s secretary is responsible for keeping and maintaining the register of members regularly. Also, he should make sure that all details about the transfer and issuance of shares (Also see Why Do Companies Repurchase Their Own Shares?) have been keyed into the register. This has shown the significant role of a secretary in managing the documents in a company. Hence, if you, as a business owner, think that you need help in handling such issues, do not hesitate to contact a corporate secretarial firm in Johor Bahru.
Section 109 in Companies Act 2016 applies given that the right on the company’s shares (Also see Can You Distinguish Equity and Shares?) or debentures is transferred to an individual by the operation of law, and the individual informs the company that he wants to be registered as its shareholder or debenture holder in writing. If he chooses to register another person as the company’s shareholder or debenture holder, he should give evidence for his choice by executing the transfer to that person.
All the provisions, restrictions and limitations about the right to transfer and registration should apply to all the notices or transfers as long as the shareholder or the debenture holder has not gone into bankruptcy or has not passed away, and he has signed the notice or transfer. However, if the shareholder or the debenture holder has passed away, the company may accept any document which has sufficient evidence by law, such as the deceased person’s letters of administration or the probate of a will that he has granted to another individual.
As soon as the company receives the notification for a transfer of shares or debentures, it should register the individual as its shareholder or debenture holder in 60 days. The registration of the transfer should entitle that individual to the same dividends, rights in the company’s meetings and voting, as well as other advantages.
If one of the company’s member has passed away, the individual who is recognised to possess any title to his interest in the relevant shares or debentures should be the legal personal representative if the deceased person was a sole holder. If the deceased person were a joint holder, the individual that can be recognised would be the survivor.