Q.Explain the procedure for registering the transmission of shares.

Registering a transmission follows its own procedure, built around proving the triggering event rather than executing a transfer deed.

The procedure for transmission of shares is deliberately different from the procedure for transfer, because transmission is not a negotiated sale but the law's recognition of an already-completed change in entitlement.

Step 1: Application with proof of the event. The person now entitled to the shares — the legal representative on a death, the Official Assignee on an insolvency, the guardian on a member's unsoundness of mind, or the liquidator on the winding up of a corporate member — applies to the company for transmission, attaching the relevant documentary proof: a death certificate with a succession certificate, probate, or letters of administration; an order of adjudication in insolvency; a court order on lunacy together with proof of guardianship; or a liquidator's certificate of appointment.

Step 2: No instrument of transfer. Since there is no transferor and transferee negotiating a sale, transmission does not require the Form SH-4 instrument of transfer that an ordinary transfer needs.

Step 3: Board's scrutiny and the applicant's election. The company's Board examines the documents to satisfy itself of the applicant's genuine title. Once satisfied, the legal representative is usually given the choice — following the pattern of the standard articles in Table F of Schedule I to the Act — either to be registered as the holder himself, or to have the shares transferred directly to a named third person without first being registered in his own name. …

Students sometimes wrongly state that a Form SH-4 instrument of transfer is required for transmission, exactly as it is for an ordinary transfer — transmission needs p …