6 Most Important differences between Transfer of Shares and Transmission of Shares

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.

2. Consideration is required for transfer of shares.

3. The transferor has to execute a valid deed/instrument in favor of the transferee.

Image Source: consumedmediacom.c.presscdn.com

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.

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.

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.