• 5 Marks

BL – May 2015 – L1 – SB – Q3c – Company Law

State and explain two requirements for transferring shares under the Companies and Allied Matters Act (CAMA).

Mr. ‘A’, a shareholder of Zee Limited, desires to transfer his shares in the company to Mr. ‘B’.
Required: State and explain any TWO requirements of the Companies and Allied Matters Act that must be met for the transfer of Mr. A’s shares to Mr. ‘B’ to be effective. (5 Marks)

The requirements for successful transfer of shares by the shareholders of Zee Limited are as follows:
i. An instrument of transfer must be prepared and executed by the parties: The instrument is a formal agreement evidencing the transfer of shares between the shareholders, prepared and signed by the parties involved in the transfer.

ii. The company must register the instrument of transfer: This is necessary for proper documentation and compliance with the Companies and Allied Matters Act (CAMA). The registration ensures that the transfer is officially recognized by the company.

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