Share Transmission
Encyclopedia
Share transmission is a mechanism by which the title to share
s is devolved other than by transfer. This is typically applicable for:
Ownership: on registration of the transmission of shares, the person entitled to transmission of shares becomes the shareholder of the company and is entitled to all rights and subject to all liabilities as such shareholder.
Method: while transfer of shares is brought about by delivery of a proper instrument of transfer (viz, transfer deed) duly stamped and executed, transmission of shares is done by forwarding the necessary documents (such as a notarised copy of death certificate) to the company.
Share (finance)
A joint stock company divides its capital into units of equal denomination. Each unit is called a share. These units are offered for sale to raise capital. This is termed as issuing shares. A person who buys share/shares of the company is called a shareholder, and by acquiring share or shares in...
s is devolved other than by transfer. This is typically applicable for:
- devolution by death
- succession
- inheritance
- bankruptcy
- marriage
Ownership: on registration of the transmission of shares, the person entitled to transmission of shares becomes the shareholder of the company and is entitled to all rights and subject to all liabilities as such shareholder.
Method: while transfer of shares is brought about by delivery of a proper instrument of transfer (viz, transfer deed) duly stamped and executed, transmission of shares is done by forwarding the necessary documents (such as a notarised copy of death certificate) to the company.
Legal process
In the case of death, the surviving shareholders have to submit a request letter supported by an attested copy of the death certificate of the deceased shareholder and the relevant share certificates. The company’s registrar and share transfer agent on receipt of the said documents will delete the name of deceased shareholder from its records and return the share certificates to the applicant/registered holder with necessary endorsement.See also
- Stock certificateStock certificateIn corporate law, a stock certificate is a legal document that certifies ownership of a specific number of stock shares in a corporation...
- Share forfeitureShare forfeitureShare forfeiture is the process by which the directors of a company cancel the power of shareholder if he does not pay his call money when the company demands for it. Company will give 14 days notice, after 14 days if shareholder did not pay then company will forfeit his shares and cut off his name...
- Stock transfer agent