Transfer and transmission of shares:The shares of the company are movable property. They are transferable in the manner provided by the articles of the company. An application for the transfer of shares has to be made either by the transfer or by the transferee. The company shall not register a transfer unless the instrument of transfer is duly stamped and properly executed. When the transfer has been examined and found to be in order, a receipt will be issued to the person lodging it.
When the transfer has been approved by the standing transfer committee of the board or passed by the directors in their periodical meetings, the necessary entries of transfer will be made in the register of members.
Transmission of shares:
In case of the death, insolvency or lunacy of a shareholder, the title or property in share is transferred to the legal successor of the deceased shareholder by the operation of law. The process of transfer of shares to the legal successor by operation of law is termed as transmission of shares. When the transmission of shares is properly recorded, the legal successor becomes the bonafide owners of the shares.
When the transfer has been approved by the standing transfer committee of the board or passed by the directors in their periodical meetings, the necessary entries of transfer will be made in the register of members.
Transmission of shares:
In case of the death, insolvency or lunacy of a shareholder, the title or property in share is transferred to the legal successor of the deceased shareholder by the operation of law. The process of transfer of shares to the legal successor by operation of law is termed as transmission of shares. When the transmission of shares is properly recorded, the legal successor becomes the bonafide owners of the shares.