Point of Discussion – Transfer of Shares & Transmission of Shares

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.

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PointsTransfer of SharesTransmission of Shares
1.MeaningTransfer 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.NatureTransfer is done voluntary by the member.It is compulsory action taken in case of death, insolvency or lunacy of a member.
3.transfereeShares can be transferred to any person.Shares are transmitted to legal representative (spoke person) only.
4.Kind of actionTransfer of shares is a voluntary act of the parties.Transmission of shares is compulsory action on happening of specific event like death etc.
5.ConsiderationIn 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 DutyAs 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.ProcedureAn 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.LiabilityIn 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.

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