Point of Discussion – Transfer of Shares & Transmission of Shares HSC Board– Easy way to learn and memorized – class 12th – S.P – Notes of source of business finance – Difference between Transfer & Transmission , Distinguish between Transfer Shares and Transmission of Shares– Role of a Secretary in Capital Formation – Secretarial Practice – Notes, & Distinguish Between – according to the New Textbook for HSC Board – Difference between, Study material, studies notes, study notes.
|Points||Transfer of Shares||Transmission of Shares|
|1.||Meaning||Transfer is a usual action of passing the ownership of shares to another person by the member voluntarily.(not compulsorily)||Transmission is done in case of death, lunacy (madness) or insolvency (bankruptcy) of a member by passing the ownership of shares to the legal representative.|
|2.||Nature||Transfer is done voluntary by the member.||It is compulsory action taken in case of death, insolvency or lunacy of a member.|
|3.||transferee||Shares can be transferred to any person.||Shares are transmitted to legal representative (spoke person) only.|
|4.||Kind of action||Transfer of shares is a voluntary act of the parties.||Transmission of shares is compulsory action on happening of specific event like death etc.|
|5.||Consideration||In this case the shareholder transfers the shares to other person for consideration or money.||In case of transmission shares are transmitted to legal representative without consideration.|
|6.||Stamp Duty||As money is involved in case of transfer, stamp duty is to be paid on the transaction based on the market value of shares.||Consideration or money is not involved in the transaction therefore stamp duty not required to be put.|
|7.||Procedure||An application is made to the company to transfer which is signed by the transferor and transferee. The director decide whether to approve the transfer of not.||In case of transmission the person in whose name the shares are transmitted has to give a proof that he is a legal representative of the concerned member|
|8.||Liability||In case of transfer the liability is also transferred from the transferor to transferee immediately after transfer.|
After transmission of shares liability of original members is continued with the person to whom the shares are transmitted.