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

Transfer of shares is the intentional handing over of shares by a member to another person by a legal document, while transmission is the automatic passing of shares to the legal heirs or representatives when a member dies, becomes insolvent or of unsound mind.

Transfer of shares is a voluntary and deliberate action. An existing shareholder (transferor) sells, gifts or otherwise passes on the shares to another person (transferee) of his own choice. It is carried out through a proper instrument of transfer (Form SH-4), duly stamped and signed by both parties, and submitted to the company for registration.

Transmission of shares takes place automatically by operation of law, not by any agreement. It arises on the death, insolvency or insanity of a shareholder, when the shares pass on to the legal heir, successor, official assignee or receiver. No transfer deed and no stamp duty are required; the claimant only proves his title with documents such as a death certificate, succession certificate or letters of administration.