☆.Difference between Transfer and Transmission of Shares.☆

transfer is voluntary(i want to transfer my shares to other person) where as transmission is by operation of law(eg. death or insolvency)

Meaning: Transmission of shares means the passing of property or title in shares by the operation of law froa member to his legal representative on the happening of a certain event like death, insolvency or lunacy. 


Initiative: The legal heir of the deceased share holder takes the initiative. 


Nature of Action: It is not deliberate action of a shareholder, but the result of operation of law, after he dies or becomes insane or bankrupt. 


Parties: The legal heir of the deceased share holder is involved. 


Documents Required: Certain documents like court order of insolvency, death certificate are required for transmission of shares. 


Stamp Duty: No stamp duty is payable for transmission of shares. 


Right of Refuse: Transmission of shares can't be refused, it is under operation of law. 
(1) Transfer of Shares: 


Meaning: Transfer means transferring the shares on the name of some other person on a voluntary basis. 


Initiative: The transfer-or and transferee takes initiative. 


Nature of Action:It is a deliberate action taken by a share holder. 


Parties: There are two parties i.e. transfer-or and transferee to the transfer of shares. 


Documents Required: An instrument of transfer has to be duly executed by the transfer-or and transferee. 


Stamp Duty: It is payable on the market value of shares 


Right of Refuse: The directors of the company can refuse transfer of shares on certain grounds. 



Consideration: There must be an adequate consideration for the transfer of shares, unless they are transferred by way of gift.