Question

Distinguish between the following.

Transfer of Shares and Transmission of Shares

Answer 1

	Transfer of Shares	Transmission of Shares
Meaning	Transfer of shares means voluntarily or deliberately giving away one's shares to another person by entering into a contract with the buyer.	It means the transfer of ownership of a member's shares to his legal representative due to the operation of law. It takes place on the death, insolvency or insanity of the members.
When done	It is done when the member wants to sell his shares or give his shares as a gift.	It is done when the member dies or becomes insolvent or insane.
Nature of Action	It is a voluntary action taken by the member.	It is an involuntary action. It is due to the operation of law.
Parties involved	In the transfer of shares, there are two parties involved: the member, who is called the transferor and the buyer, who is called the transferee.	There is only one party, e.g., the nominee of the member in case of death of the member or the legal representative.
Instrument of transfer	Transfer requires an instrument of transfer. It is a contract between the transferor and the transferee.	No instrument of transfer is needed.
Initiated by	The transferor initiates the transfer process.	The legal representative or official receiver initiates the process of transmission.
Consideration	Transfer of shares is done often by the member to receive some consideration (money), i.e., the buyer has to pay for the shares. (Except given as a gift.)	No consideration is involved here. The legal heir or official receiver need not pay for the shares.
Liability	The liability of the transferor ends after the shares are transferred.	The original liability of the member continues in case of transmission of shares.
Stamp Duty	Stamp duty as per the market value of shares has to be paid.	No stamp duty is to be paid.