One of the most important features of the securities is that they are transferable, which

facilitates the company in acquiring permanent capital and liquid investments to the
shareholders. Transfer of shares is a voluntary act of a member that takes place by way of
contract. It is not exactly same as transmission of shares, as the two differ in their meaning
and concept as well. The transmission of shares occurs due to the operation of law i.e. in case
if the member passes away or becomes insolvent/lunatic.

Difference Between Transfer and Transmission of Shares

One of the most important features of the securities is that they are transferable, which
facilitates the company in acquiring permanent capital and liquid investments to the
shareholders. Transfer of shares is a voluntary act of a member that takes place by way of
contract. It is not exactly same as transmission of shares, as the two differ in their meaning
and concept as well. The transmission of shares occurs due to the operation of law i.e. in case
if the member passes away or becomes insolvent/lunatic.

Transfer of shares requires and instrument of transfer, whereas no such instrument is required
in the transmission of shares. To further understand, the difference between transfer and
transmission of shares, you need to have a glance at the article excerpt, provided below.

Content: Transfer of Shares Vs Transmission of Shares

BASIS FOR
TRANSFER OF SHARES TRANSMISSION OF SHARES
COMPARISON

Meaning Transfer of shares refers to the Transmission of shares means the

transfer of title to shares, transfer of title to shares by the
voluntarily, by one party to operation of law.
another.

Affected by Deliberate act of parties. Insolvency, death, inheritance or

lunacy of the member.
 BASIS FOR
TRANSFER OF SHARES TRANSMISSION OF SHARES
COMPARISON

Initiated by Transferor and transferee Legal heir or receiver

Consideration Adequate consideration must be No consideration is paid.

there.

Execution of valid Yes No

transfer deed

Liability Liabilities of transferor cease on Original liability of shares

the completion of transfer. continues to exist.

Stamp duty Payable on the market value of

No need to pay.
shares.