Page 167 - DCOM509_ADVANCED_AUDITING

Advanced Auditing

Notes (b) It bears stamp or other endorsement of the prescribed authority showing the date
on which it was presented to such authority.

(c) It has been delivered to the company within the time-limits laid down in this behalf.
(d) It is accompanied by the related share certificates.

(e) Any correction, erasure, overwriting, or crossing out, is properly authenticated.
(f) Number of shares to be transferred is correctly stated in figures and in words.

(g) Amount of consideration is correctly stated in figures and in words.
(h) Particulars such as folio no., name of the transferor etc. as stated in the transfer deed
tally with those in the register of members.
(i) Transferor’s signature on the transfer deed tally with his specimen signature as per
the company’s records.
(j) If it is signed by an individual against whom insolvency proceedings are pending,
it is duly certified and countersigned by the official assignee.
(k) If it is signed by or on behalf of a company against which the liquidation proceedings
are pending, it is certified and counter-signed by the liquidator.
(l) Transferor’s signatures are duly witnessed.
(m) It contains the requisite particulars of the transferee.

(n) If it is duly signed by the transferee.
5. Verify by reference to the Minutes Book of the Board of Directors that all the transfers
recorded in the Transfers Journal have been approved by the Board.

6. Check the postings of distinctive numbers of shares transferred and the name of transferors
and transferees into the Register of Members from the Share Transfer Journal.

7. Verify that every duplicate Shares Certificate in lieu of the one lost or destroyed has been
issued under the consent of the Board and on the conditions prescribed by the Board as
regards production of evidence or execution of a Bond of Indemnity.

9.8.1 Transmission of Shares

Sometime shares are transferred to another person by operation of law on account of death or
insolvency of a shareholder. The auditor should:

(i) Ensure that the procedure prescribed by the Articles in this regard has been strictly
followed.
(ii) Confirm that the documents testifying the authority of the legal representative have been
properly verified.
(iii) Ascertain whether the order of the Court and other relevant documents have also been
duly examined in the case of transmission of shares on insolvency.
(iv) Examine the relevant minutes of the meetings of the Board of Directors.

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