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Everything You Need To Know About Transfer And Transmission Of Shares | Corporate Law | Reema Baruah 

Corporate Law
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Transfer and transmission of shares are two different ways of changing the ownership of shares in a company.
*Transfer of shares* is a voluntary act by the shareholder to transfer their shares to another person. The transfer must be in writing and must be registered with the company.
*Transmission of shares* occurs when the shareholder dies, becomes insolvent, or is declared a lunatic. In these cases, the shares automatically pass to the shareholder's legal representative.
There are a number of differences between transfer and transmission of shares.
*Voluntary vs. involuntary:* Transfer of shares is a voluntary act, while transmission of shares is involuntary.
*Documentation:* Transfer of shares must be in writing, while transmission of shares does not require any documentation.
*Registration:* Transfer of shares must be registered with the company, while transmission of shares is automatically registered with the company.
*Cost:* Transfer of shares can be costly, while transmission of shares is usually free.
The following are the steps involved in transferring shares:
1. The transferor and transferee must sign a transfer deed.
2. The transfer deed must be stamped and witnessed.
3. The transfer deed must be registered with the company.
4. The company will issue a new share certificate to the transferee.
The following are the steps involved in transmitting shares:
1. The legal representative of the deceased shareholder must provide proof of their identity and relationship to the deceased shareholder.
2. The legal representative must provide a copy of the death certificate.
3. The company will issue a new share certificate to the legal representative.
If you are considering transferring or transmitting shares, it is important to consult with an attorney to ensure that you understand the process and your rights.

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30 окт 2024

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