(1) Transfer of Shares:
Meaning: Transfer means transferring the shares on the name of some other person on a voluntary basis.
Initiative: The transfer-or and transferee takes initiative.
Nature of Action:It is a deliberate action taken by a share holder.
Parties: There are two parties i.e. transfer-or and transferee to the transfer of shares.
Documents Required: An instrument of transfer has to be duly executed by the transfer-or and transferee.
Stamp Duty: It is payable on the market value of shares
Right of Refuse: The directors of the company can refuse transfer of shares on certain grounds.
Consideration: There must be an adequate consideration for the transfer of shares, unless they are transferred by way of gift.
(2) Transmission of Shares:
Meaning: Transmission of shares means the passing of property or title in shares by the operation of law froa member to his legal representative on the happening of a certain event like death, insolvency or lunacy.
Initiative: The legal heir of the deceased share holder takes the initiative.
Nature of Action: It is not deliberate action of a shareholder, but the result of operation of law, after he dies or becomes insane or bankrupt.
Parties: The legal heir of the deceased share holder is involved.
Documents Required: Certain documents like court order of insolvency, death certificate are required for transmission of shares.
Stamp Duty: No stamp duty is payable for transmission of shares.
Right of Refuse: Transmission of shares can't be refused, it is under operation of law.
Consideration: The question of consideration does not arise in the case of transmission of shares, as it is due to the operation of law.
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