{"id":6588,"date":"2021-09-21T12:41:32","date_gmt":"2021-09-21T07:11:32","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=6588"},"modified":"2025-10-07T20:18:41","modified_gmt":"2025-10-07T14:48:41","slug":"difference-between-transfer-of-shares-and-transmission-of-shares","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/difference-between-transfer-of-shares-and-transmission-of-shares\/","title":{"rendered":"Difference Between Transfer of Shares and Transmission of Shares (9 Points)"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e0efd23ae8d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e0efd23ae8d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-transfer-of-shares-and-transmission-of-shares\/#Difference_Between_Transfer_of_Shares_and_Transmission_of_Shares\" >Difference Between Transfer of Shares and Transmission of Shares<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-transfer-of-shares-and-transmission-of-shares\/#Meaning_of_Transfer_of_Shares\" >Meaning of Transfer of Shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-transfer-of-shares-and-transmission-of-shares\/#Meaning_of_Transmission_of_Shares\" >Meaning of Transmission of Shares<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-transfer-of-shares-and-transmission-of-shares\/#Difference_Between_Transfer_of_Shares_and_Transmission_of_Shares-2\" >Difference Between Transfer of Shares and Transmission of Shares<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"has-text-align-center has-black-color has-text-color wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_Between_Transfer_of_Shares_and_Transmission_of_Shares\"><\/span><strong>Difference Between Transfer of Shares and Transmission of Shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_Transfer_of_Shares\"><\/span><strong>Meaning of <strong><strong>Transfer of Shares<\/strong><\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><em>Transfer of shares means voluntary transfer of shares by a member of a company in favour of another person. A member may transfer the shares for consideration or give them away as a gift. Every member has a right to transfer their shares.<\/em><\/strong><\/p>\n\n\n\n<p>In case of public companies, shares are freely transferable subject to the provisions of the Articles of Association. Whereas, in case of Private Company, there are restrictions on free transfer of shares.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Difference-Between-Transfer-of-Shares-and-Transmission-of-Shares-1024x576.jpg\" alt=\"Difference Between Transfer of Shares \nand Transmission of Shares\n\" class=\"wp-image-6595 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Difference-Between-Transfer-of-Shares-and-Transmission-of-Shares-1024x576.jpg 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Difference-Between-Transfer-of-Shares-and-Transmission-of-Shares-300x169.jpg 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Difference-Between-Transfer-of-Shares-and-Transmission-of-Shares-768x432.jpg 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Difference-Between-Transfer-of-Shares-and-Transmission-of-Shares-1536x864.jpg 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Difference-Between-Transfer-of-Shares-and-Transmission-of-Shares-640x360.jpg 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Difference-Between-Transfer-of-Shares-and-Transmission-of-Shares.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_Transmission_of_Shares\"><\/span><strong>Meaning of <strong><strong><strong>Transmission of Shares<\/strong><\/strong><\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><em>Transmission of shares takes place due to operation of law i.e. the shares of a member are automatically transferred to another person on the death, insolvency, or insanity of a member<\/em><\/strong>. Thus the transmission of shares is an involuntary action. There is only one party i.e. Legal Heir who initiates the process of transmission. <\/p>\n\n\n\n<p>The legal heir or official receiver need not pay any consideration for the shares. Original liability of the member continues in case of transmission. There is no need to submit Instrument of Transfer or pay stamp duty.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-fixed-capital-and-working-capital\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-fixed-capital-and-working-capital\/\" rel=\"noreferrer noopener\">Difference Between Fixed Capital and Working Capital<\/a><\/li><li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-owned-capital-and-borrowed-capital\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-owned-capital-and-borrowed-capital\/\" rel=\"noreferrer noopener\">Difference Between Owned Capital and Borrowed Capital<\/a><\/li><li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-debenture-and-share\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Debenture and Share<\/a><\/li><li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-preference-shares-and-equity-shares\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-preference-shares-and-equity-shares\/\" rel=\"noreferrer noopener\">Difference Between Preference Shares and Equity Shares<\/a><\/li><\/ul>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_Between_Transfer_of_Shares_and_Transmission_of_Shares-2\"><\/span><strong><strong><strong>Difference Between Transfer of Shares and Transmission of Shares<\/strong><\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Points<\/strong><\/td><td><strong><strong><strong>Transfer of Shares<\/strong><\/strong><\/strong><\/td><td><strong><strong><strong>Transmission of Shares<\/strong><\/strong><\/strong><\/td><\/tr><tr><td>1) Meaning<\/td><td>Transfer of shares means<br>voluntarily or deliberately giving<br>away one\u2019s shares to another person by entering into a contract with the buyer.<\/td><td>It means transfer of ownership<br>of a member\u2019s shares to his legal<br>representative due to operation<br>of law. It takes place on death,<br>insolvency or insanity of the<br>members.<\/td><\/tr><tr><td>2) When done<\/td><td>It is done when the member<br>wants to sell his shares or give<br>his shares as gift.<\/td><td>It is done when the member dies<br>or becomes insolvent or insane.<\/td><\/tr><tr><td>3) Nature of Action<\/td><td>It is a voluntary action taken by<br>the member.<\/td><td>It is an involuntary action. It is<br>due to operation of law.<\/td><\/tr><tr><td>4) Parties<br>involved<\/td><td>In transfer of shares, there are two parties involved- the member<br>who is called as transferor and the buyer who is called as transferee.<\/td><td>There is only one party e.g. the<br>nominee of the member in case<br>of death of the member or the<br>legal representative.<\/td><\/tr><tr><td>5) Instrument of transfer<\/td><td>Transfer requires Instrument of<br>transfer. It is a contract between<br>the transferor and transferee.<\/td><td>No Instrument of transfer is<br>needed.<\/td><\/tr><tr><td>6) Initiated by<\/td><td>Transferor initiates the transfer<br>process.<\/td><td>Legal representative or official<br>receiver initiates the process of<br>transmission.<\/td><\/tr><tr><td>7) Consideration<\/td><td>Transfer of shares is done often<br>by the member to receive some<br>consideration (money) i.e. the<br>buyer has to pay for the shares.<br>(Except given as gift.)<\/td><td>No consideration is involved here. The legal heir or official receiver need not pay for the shares.<\/td><\/tr><tr><td>8) Liability<\/td><td>The liability of the transferor ends<br>after the shares are transferred.<\/td><td>Original liability of the member<br>continues in case of transmission<br>of shares.<\/td><\/tr><tr><td>9) Stamp Duty<\/td><td>Stamp duty as per the market<br>value of shares has to be paid.<\/td><td>No stamp duty is to be paid<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":6595,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[10],"tags":[2668],"class_list":["post-6588","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-educational-blogs","tag-difference-between-transfer-and-transmission-of-shares"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/6588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=6588"}],"version-history":[{"count":2,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/6588\/revisions"}],"predecessor-version":[{"id":39350,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/6588\/revisions\/39350"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/6595"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=6588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=6588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=6588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}