This section applies where a member of a registered society has made a nomination under section 37.
On receiving satisfactory proof of the member's death, the society's committee must—
transfer to a person any property to which the person is entitled under the nomination, or
pay the person the full value of that property.
Subsection (2) applies in relation to property consisting of shares in the society even if the society's rules provide that its shares are not transferable.
But if the transfer of shares to a person in accordance with the nomination would raise the person's share capital beyond the maximum for the time being permitted in the case of the society, the society's committee—
must not transfer to the person more of those shares than raises the person's share capital to that maximum, and
must pay the person the value of any of those shares not transferred.