Difference Between Transfer and Transmission of Shares

Transfer of shares refers to transferring of title to shares, voluntarily, by one party to another. Transmission of shares refers to the transfer of title of shares by the operation of law. Death, Insolvency, Inheritance or lunacy of the parties.

1. What is meant by transmission of shares?
2. What is transmission of shares in company law?
3. What are the documents required for transmission of shares?
4. Which of the following circumstances cause transmission of shares?
5. What is difference between share and stock?
6. What is an example of transfer?
7. What is the procedure to transfer shares?
8. Who is a debenture holder?
9. How many types of preference shares are there?
10. What is transfer and transmission?
11. What are the equity shares?
12. What is transmission and transposition of shares?

What is meant by transmission of shares?

Transmission of shares occurs when the shares of a deceased share holder are inherited or bequeathed to an heir or personal representative of the deceased shareholder.

What is transmission of shares in company law?

Transmission of shares means whenever there is sudden death of the director or shareholder, in such event the ownership of shares passes on to legal heirs. Procedure for transmission of shares is laid down in sec 56 of the Companies Act, 2013.

What are the documents required for transmission of shares?

Transmission form; Copy of the death certificate duly notarised; Letter of Indemnity duly supported by a guarantee of an independent Surety acceptable to the DP, made on appropriate non judicial stamp paper; An Affidavit made on appropriate non judicial stamp paper; and.

Which of the following circumstances cause transmission of shares?

Transmission of shares takes place, when the registered shareholder dies; or when he is adjudicated an insolvent; or where the shareholder is a company it goes into liquidation. ... The legal representative may transfer the shares devolved upon him by transmission.

What is difference between share and stock?

Stocks are the collection of shares of multiple companies or are a collection of shares of a single company. ... Shares represent the proportion of ownership in the company while stock is a simple aggregation of shares in a company. Shares are issued at par, discount or at a premium.

What is an example of transfer?

Transfer is defined as to move, carry or transport from one person or place to another. An example of to transfer is the owner of a car signing the title over to a new owner. An example of to transfer is picking up a package from one location and bringing it to another.

What is the procedure to transfer shares?

A person who gives his signature, name and address as approval for transfer must see the transferor and the transferee sign the share/debentures transfer deed in person. The relevant share/debenture certificate or allotment letter with the transfer deed must be attached and sent to the company.

Who is a debenture holder?

A person having the debentures is called debenture holder whereas a person holding the shares is called shareholder. ... A shareholder or member is the joint owner of a company; but a debenture holder is only a creditor of the company. Shareholders are invited to attend the annual general meeting of the company.

How many types of preference shares are there?

The four main types of preference shares are callable shares, convertible shares, cumulative shares, and participatory shares. Each type of preferred share has unique features that may benefit either the shareholder or the issuer.

What is transfer and transmission?

The transfer of shares is a voluntary act by the holder of shares and takes place by way of contract. Whereas, the transmission of shares takes place due to the operation of law that is on the death of the holder of shares or in an event where the holder becomes insolvent/lunatic.

What are the equity shares?

What are Equity Shares? Equity shares are long-term financing sources for any company. These shares are issued to the general public and are non-redeemable in nature. Investors in such shares hold the right to vote, share profits and claim assets of a company.

What is transmission and transposition of shares?

Transmission means transfer of title of shares by way of inheritance and succession, while transposition means re-arrangement or interchanging of the order of name of shareholders. Sebi stated that it does not prohibit the investor from holding the shares in physical form even from 1 April.