Ravi Gupta (Student of CA-IPCC CS and M.COM) (243 Points)
12 October 2010
Sunshine
(Helping All)
(10575 Points)
Replied 12 October 2010
transfer is voluntary(i want to transfer my shares to other person) where as transmission is by operation of law(eg. death or insolvency)
naman rustagi
(no designation)
(26 Points)
Replied 04 August 2013
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
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.
CAclubindia
