Ø Rejected Share Transfer Deed returned to the Transferee—In Blank Transfers
The CLB has pointed out that the company on not registering the transfer should have returned the documents to the party who lodged them (the transferee) and not the transferor as the transferor loses his right in the shares as he executes the transfer in blank.
Ø Pledging of shares
Shares of a company can be a subject matter of a valid pledge. As per Sec-2(7) of Sales of Goods Act, 1930 the definition of goods includes stocks and shares. So in this way we may conclude that shares of a company can be a subject matter of a valid pledge.
