Transmission of Shares - Exam Notes

Transmission of shares
SH dies = shares automatically immediately pass to PRs.
SH declared bankrupt = shares automatically vest in trustee.
 MA 27 in either event, PRs/trustees entitled to any dividend declared on shares, but they
cannot exercise votes attached to shares as they are not members of C.
 PRs/trustees must produce to C grant of representation to establish their right to deal with
shares, they then have choice to:
1. Elect to be registered SHs themselves, or
o Register of members does not show they hold shares in representative
capacity
o Subject to articles
o Directors cannot prevent PRs/trustees from acquiring shares by
transmission, but they can prevent their name being registered as SHs if
MAs.
o PRs/trustee can then transfer shares in usual way, either passing them to
beneficiary under will or selling them to third party for benefit of deceased’s
estate.
2. Transfer shares directly to ultimate beneficiary or third party in their representative
capacity.
o No need for PR/trustee to be registered as SH to do
o Subject to articles