Q.State with reasons whether the following statement is True or False:
Transfer of shares is initiated by the company.

The statement is False. Transfer of shares is initiated by the shareholder (transferor), while the company only records it.

Transfer of shares means the voluntary passing of shares from one person (the transferor) to another (the transferee) by way of sale or gift. The process begins with the shareholder who decides to part with his shares. He and the buyer execute a share transfer deed and submit it, along with the share certificate, to the company.

The company's role is not to initiate the transfer but to process it: the secretary checks the documents, and once everything is in order, the Board approves and the company registers the transfer by entering the new holder's name in the Register of Members. Thus the company acts only after the shareholder starts the process.

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