Question

Distinguish between Transfer and Transmission of Shares?

08 Sep 2023
Answer :
Word Count : 513
Aspect Transfer of Shares Transmission of Shares
Definition Transfer of shares refers to the voluntary transfer of ownership from one shareholder to another. It occurs when an existing shareholder decides to sell or gift their shares to another party. Transmission of shares refers to the automatic transfer of ownership of shares upon the death, bankruptcy, or insolvency of a shareholder. It happens without the consent or action of the shareholder.
Nature Voluntary and consensual process. Involuntary and non-consensual process.
Initiation Initiated by the shareholder who wishes to transfer their shares to a third party. Initiated by external events like the death or insolvency of a shareholder.
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