Q.Distinguish between Transfer of Shares and Transmission of Shares.

One of these ways of changing share ownership is a deliberate act by the member; the other happens to a member's shares without any choice at all.

Transfer of Shares:

• A voluntary act — the member deliberately chooses to sell or hand over the shares.
• Effected through a duly stamped, signed instrument of transfer (Form SH-4) under Section 56, delivered to the company within the prescribed period.
• Stamp duty is payable on the transfer.
• The transferee's name is entered in the Register of Members on the company registering the transfer deed.

Transmission of Shares:

• An involuntary event — the shares pass automatically by operation of law, typically on the death, insolvency, or unsoundness of mind of the member.
• No instrument of transfer is used; instead, the claimant produces proof of title — a succession certificate, probate of will, letter of administration, or a court order.
• No stamp duty is payable, since there is no sale. …