A shareholder lodges a share transfer with a private company. The directors do not wish to register it. What must they do under the Companies Act 2006?
Answer and explanation
Correct answer: D. Register it within two months or send the transferee notice of refusal with reasons
- Step 1: Section 771 sets a duty to register a transfer or give notice of refusal.
- Step 2: The notice must be sent within two months of the transfer being lodged and state the reasons.
Answer
Register it within two months or send the transferee notice of refusal with reasons.
Why not the others: The period is two months, not 28 days; no AGM approval is required; reasons must be given.
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