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TRANSFER OF SHARES
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TRANSMISSION OF SHARES
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Meaning
Transfer is a
usual action of passing the ownership of shares to another person by the
member voluntarily.(not compulsorily)
Nature
Transfer is
done voluntary by the member.
Who is
the transferee?
Shares can be
transferred to any person.
Consideration. (thought)
In this case
the shareholder transfers the shares to other person for consideration or
money.
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.
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.
Liability
In case of
transfer the liability is also transferred from the transferor to transferee
immediately after transfer.
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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.
It is
compulsory action taken in case of death, insolvency or lunacy of a member.
Shares are
transmitted to legal representative (spoke person) only.
In case of
transmission shares are transmitted to legal representative without
consideration.
Consideration
or money is not involved in the transaction therefore stamp duty not required
to be put.
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
After transmission of shares liability of
original members is continued with the person to whom the shares are
transmitted.
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TRANSFER OF SHARES TRANSMISSION OF SHARES
