Question

Distinguish between the Transfer of shares and Transmission of shares.

Answer 1

Difference Between Transfer andTransmission of Shares. ... Thetransmission of shares occurs due to the operation of law i.e. in case if the member passes away or becomes insolvent/lunatic. Transfer of sharesrequires and instrument of transfer, whereas no such instrument is required in the transmission of shares.

Answer 2

The transfer of shares is initiated by the parties to transfer, i.e. transferor and transferee. ... On the other hand, the original liability of shares exists. Stamp duty is payable on the market value of shares in case of transferwhile in the transmission of shares no stamp duty is to be paid.