Q.Differentiate between share transfer and share transmission.

Transfer is a voluntary transaction by the parties needing a stamped transfer deed and consideration; transmission is automatic by operation of law (death/insolvency/lunacy) needing no deed, stamp or consideration. | Point of difference | Share Transfer | Share Transmission | |---|---|---| | Meaning | Voluntary passing of shares from one person (transferor) to another (transferee) | Passing of shares by operation of law on death, insolvency or lunacy of a member | | How it arises | By a deliberate act of the parties | Automatically, by law, not by any act of the member | | Instrument of transfer | A duly executed instrument of transfer (transfer deed) is required | No transfer deed is required; only evidence like death certificate / court order | | Consideration | Normally made for consideration (price) | No consideration is involved | | Stamp duty | Stamp duty is payable on the transfer deed | No stamp duty is payable | | Parties | Transferor and transferee | Deceased/insolvent member's legal representative or official assignee | | Initiated by | The transferor (and transferee) | The legal heir / representative | | Liability | Transfe …