Section 771 | Procedure on transfer being lodged

(1)When a transfer of shares in or debentures of a company has been lodged with the company, the company must either—

(a)register the transfer, or

(b)give the transferee notice of refusal to register the transfer, together with its reasons for the refusal,

as soon as practicable and in any event within two months after the date on which the transfer is lodged with it.

(1A)The company may not register the transfer under subsection (1)(a) unless satisfied that it has the information that it is required to enter in its register of members in relation to the transferee.^F1

(2)If the company refuses to register the transfer, it must provide the transferee with such further information about the reasons for the refusal as the transferee may reasonably request.This does not include copies of minutes of meetings of directors.

(2A)Repealed^F2

(3)If a company fails to comply with this section, an offence is committed by—

(a)the company, and

(b)every officer of the company who is in default.

(4)A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 3 on the standard scale and, for continued contravention, a daily default fine not exceeding one-tenth of level 3 on the standard scale.

(5)This section does not apply—

(a)in relation to a transfer of shares if the company has issued a share warrant in respect of the shares (see section 779);

(b)in relation to the transmission of shares or debentures by operation of law.