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3ccc4transfer and Transmission of Shares
3ccc4transfer and Transmission of Shares
3ccc4transfer and Transmission of Shares
facilitates the company in acquiring permanent capital and liquid investments to the
shareholders. Transfer of shares is a voluntary act of a member that takes place by way of
contract. It is not exactly same as transmission of shares, as the two differ in their meaning
and concept as well. The transmission of shares occurs due to the operation of law i.e. in case
if the member passes away or becomes insolvent/lunatic.
One of the most important features of the securities is that they are transferable, which
facilitates the company in acquiring permanent capital and liquid investments to the
shareholders. Transfer of shares is a voluntary act of a member that takes place by way of
contract. It is not exactly same as transmission of shares, as the two differ in their meaning
and concept as well. The transmission of shares occurs due to the operation of law i.e. in case
if the member passes away or becomes insolvent/lunatic.
Transfer of shares requires and instrument of transfer, whereas no such instrument is required
in the transmission of shares. To further understand, the difference between transfer and
transmission of shares, you need to have a glance at the article excerpt, provided below.
BASIS FOR
TRANSFER OF SHARES TRANSMISSION OF SHARES
COMPARISON