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.
| SR.
No |
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. |