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SHARES

KEERTHIKA.D (CA FINAL STUDENT) (90 Points)

16 March 2009  

What is the difference between Transfer of Shares and Transmission of Shares?


 6 Replies

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)   (114654 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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