TRANSFER OF SHARES. The instrument of transfer of shares should be in accordance with the company's regulations. In com panies formed under the Companies Clauses Consolidation Act, 1845, the transfer must be by deed ; in other companies the transfer may be under hand or under seal, according to the articles of the company.
The following is the form of transfer not under seal, as given in regulation 19 of Table A, Companies (Consolidation) Act, 1908, which a company may adopt, unless the directors approve of some other form : 1, A.B. of in consideration of the sum of y: paid to me by C.D. of (hereinafter called " the said transferee ") do hereby transfer to the said transferee the share or shares] numbered in the undertaking called the Company Limited, to hold unto the said transferee, his executors, administrators, and assigns, subject to the several conditions on which I held the same at the time of the execution thereof : and I, the said transferee, do hereby agree to take the said share [or shares; subject to the conditions aforesaid. As witness our hands the day of Witness to the signatures of, etc.
In companies where Table A applies (see Section 11 under ARTICLES OF ASSOCIATION) the regulations are : " 20. The directors may decline to register any transfer of shares, not being fully-paid shares, to a person of whom they do not approve, and may also decline to register any transfer of shares on which the company has a lien. The directors may also suspend the registration of transfers during the fourteen days immediately preceding the ordinary general meeting in each year. The directors may decline to recognise any instrument of transfer unless " (a) a fee not exceeding two shillings and sixpence is paid to the company in respect thereof, and " (b) The instrument of transfer is accom panied by the certificate of the shares to which it relates, and such other evidence as the directors may reasonably require to show the right of the transferor to make the transfer." Certain banks and insurance companies require a special form of transfer to be used ; in some cases the forms must be filled up only by the officials of the companies, and in other cases the forms are supplied by the companies for use by those who require them.
The consideration money set forth in a transfer may differ from that which the first seller will receive, owing to sub-sales by the original buyer. The amount which is entered in the transfer is the price given by the last purchaser.
When a transfer is executed out of Great Britain the signature should he attested by H.M. Consul or Vice-Consul, a Clergyman, Magistrate, Notary Public, or by some other person holding a public position, as most companies refuse to recognise signatures not so attested. When a witness is a female. she must state whether she is a spinster, wife, or widow ; and if a Nvifc she must give her husband's name, address and quality, profession or occupation. The date must be inserted in words and not in figures.
Contractions should not be made in a transfer, and the full names, addresses and occupations of all the parties should be given.
Shares should not he registered in the name of a minor, as he may subsequently repudiate the contract.
Country bankers are often requested to send certificates to their London office or , London agents to be handed over to a broker against cash for a specified amount. They are also often requested to instruct their agents or London office to pay cash to brokers in exchange for certain securities. In either case the country banker should obtain the instructions in writing from the customer, so that there may be no mis understanding on any point. Where the request is to take up securities, the customer should state whether payment to the broker may be made by instalments according to the value of the securities he delivers. Where a transfer and certificates are to be received, the customer should state whether a certified transfer (that is, a transfer bearing a note by the company that the certificate is in the company's office) may be accepted.