6 Most Important differences between Transfer of Shares and Transmission of Shares are:
Transfer of Shares:
1. Transfer of Share means a voluntary act by the parties by which the ownership of the shares is transferred from transferor to transferee.
ADVERTISEMENTS:
2. Consideration is required for transfer of shares.
3. The transferor has to execute a valid deed/instrument in favor of the transferee.
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4. Prescribed Forms shall have to be submitted to the company.
5. In certain circumstances the Board of directors may refuse to affect the transfer.
ADVERTISEMENTS:
6. As soon as the transfer is complete, the liability of the transferor ceases
Transmission of Shares:
1. Transmission of shares means transfer of ownership of shares by operation of law.
2. No consideration is required for transmission of shares.
3. No such deed is necessary.
ADVERTISEMENTS:
4. No prescribed forms are necessary. The Court Order is sufficient.
5. In the case of transmission of shares, the Board of Directors cannot refuse.
6. The original liabilities continue.
