14. Ritika pledged her shares in XYZ Ltd. as security for a loan. During a discussion, one of her friends argued that shares cannot be treated as…

CA Intermediate · Corporate and Other Laws · MTP · September 2026
14. Ritika pledged her shares in XYZ Ltd. as security for a loan. During a discussion, one of her friends argued that shares cannot be treated as movable property. Which of the following is correct as per the General Clauses Act, 1897.
(A) (a) Shares are immovable property because they represent ownership in a company.
(B) (b) Shares are movable property since they are not immovable property.
(C) (c) Shares are neither movable nor immovable property.
(D) (d) Shares become movable property only after being transferred.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

(b) Shares are movable property since they are not immovable property.

Topics: The General Clauses Act, 1897

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