What is the difference between Transfer of Shares and Transmission of Shares?
DR GAURAV GUPTA FCA, FCS, LL.B
(COMPANY SECRETARY)
(1046 Points)
Replied 16 March 2009
TRANSFER OF SHARE MEANS TRANSFER VOLUNTARY YOUR SHARES WITH OR WITHOUT CONSIDERATION TO ANYONE WHILE TRANSMISSION IS BY THE OPERATION OF LAW IT IS DONE WHEN SHARES ARE AUTOMATIC TRANSFER IN THE NAME OF LEGAL HEIRS DUE TO DEATH OF THE ORIGINAL SHAREHOLDER
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 17 March 2009
Answer is quite simple actually. You may find it easily in any of the law book.
1. Transfer is voluntary act of parties where you need to fill form 7B i.e. share transfer deed and pay the requisite stamp duty. Transfer of share may be with or without consideration and is governed by section 108 of the companies act 1956. In transfer it is required to be approved by board of directors in the board meeting.
On the other hand Transmission of share is governed by operation of law i.e. it is a kind of automatic transfer of share to the legal heir on the death of original shareholder. It does not require and share transfer deed or stamp duty.
Remedies in case of refusal by the company to register transfer or transmission are given in section 111 for a Private Company and in section 111A for a Public company.
Best Regards--Ankur Garg ankur_gargcs @ rediffmail.com
HARDIK
(COMPANY SECRETARY NCFM (Corporate Governance ))
(664 Points)
Replied 18 March 2009
hi
transfer is a voluntary act of shareholder on the other hand transmission takes place by operation of law. i.e death
HARDIK
(COMPANY SECRETARY NCFM (Corporate Governance ))
(664 Points)
Replied 18 March 2009
hi
transfer is a voluntary act of shareholder on the other hand transmission takes place by operation of law. i.e death
HARDIK
(COMPANY SECRETARY NCFM (Corporate Governance ))
(664 Points)
Replied 18 March 2009
hi
transfer is a voluntary act of shareholder on the other hand transmission takes place by operation of law. i.e death
HARDIK
(COMPANY SECRETARY NCFM (Corporate Governance ))
(664 Points)
Replied 18 March 2009
hi
transfer is a voluntary act of shareholder on the other hand transmission takes place by operation of law. i.e death
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