Q.If shareholder is declared insolvent by court,

When a shareholder dies without a will and has no legal successor, the court appoints an administrator to handle the shares — the correct option is (C).

On a member's death the shares pass by transmission. Normally they go to the legal heir (through succession or under a will, where the executor/heir applies). But if the deceased left no will (intestate) and there is no successor to claim, the shares cannot simply be forfeited by the company or the government.

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On a shareholder being declared insolvent, the shares pass by operation of law, i.e. transmission — option (B).

Transfer of shares is a voluntary act — the holder sells/gifts shares and executes a transfer deed. Transmission of shares, on the other hand, happens automatically by operation of law on events such as death, insanity or insolvency of the holder; no transfer deed is executed. When a court declares a shareholder insolvent, the ownership of his shares vests in the Off …

Where a member dies intestate with no successor, the court appoints an administrator to deal with his shares.

On a member's death his shares pass by transmission (operation of law) rather than by transfer. Normally they go to the legal heir named in a will (executor) or to the natural successor (legal representative). But if the member dies without making a will (intestate) and leaves no successor, there is no one entitled to claim the shares directly. In that situation the court appoints an administrator, who obtains letters of administration …