Transmission of Share
The transmission of shares is the mechanism . which a shareholder transfers their interest in an entity. You must give the person or company. You are selling shares to a power of attorney, or they can be registered with a public company. This will allow them to accept payments on your behalf, and also transfer your shares officially over to them. The legal process of transferring ownership of a company’s shares from the company itself to another party. Here you can transfer shares between participants in a share-holding agreement .The process of transferring ownership of shares in an entity to another party.
Transmission Of Shares Procedure
You must give the person or company you are selling shares to a power of attorney, or they can be registered with a public company. This will allow them to accept payments on your behalf, and also transfer your shares officially over to them The transmission of shares is the transfer of ownership of the shareholder‘s interest in the company to another party. It can be a one-way transfer or both ways.If you have shares of a company or are the main holder of a company, you have to register your ownership with the Registry Office. You can do this by taking out an application at any time.
Transmission of share on death
The share pass on death is a legal document that states that the shares in a company remain intact, but the owner of those shares will not be able to do anything with them anymoreIf you made a gift of shares to a beneficiary, the shares will become part of their estate. If you died at the same time and there was no other beneficiary, the shares automatically transfer to your estate because you are the only person who can revoke them.
Further Asked Questions
The procedure for transfer and transmission of shares may vary depending on the specific requirements of the company and the relevant laws and regulations. However, in general, the steps involved in the transfer and transmission of shares are:
Transfer of Shares:
- The seller needs to fill up a share transfer deed and submit it to the company or its registrar.
- The seller needs to surrender the original share certificate to the company or its registrar.
- The buyer needs to provide their PAN card and address proof to the company or its registrar.
- The company or its registrar will verify the documents and update the share register.
- The company will issue a new share certificate in the name of the buyer.
Transmission of Shares:
- The legal heir or the person entitled to inherit the shares needs to submit a copy of the death certificate of the deceased shareholder to the company or its registrar.
- The legal heir or beneficiary needs to provide relevant documents such as a succession certificate or probate of the will.
- The company or its registrar will verify the documents and update the share register.
- The shares will be transferred to the name of the legal heir or the beneficiary.
- Stamp duty needs to be paid as per the relevant laws and regulations.
It is advisable to check the specific requirements and procedures with the company or its registrar before initiating the transfer or transmission of shares.
In some cases, shares can be transferred without a succession certificate. If the value of the shares is below a certain limit, usually around Rs. 2-5 lakhs depending on the company, and the legal heirs are willing to sign an indemnity bond and provide the necessary documents, then the company may allow the transfer of shares without a succession certificate. However, it is always advisable to check with the company or its registrar for the specific requirements and procedures for transferring shares in the absence of a succession certificate.
The different types of transfer of shares are:
- Normal Transfer - It involves the transfer of shares from one person to another person voluntarily.
- Transmission - It is the transfer of shares due to the death of the shareholder.
- Transposition - It is the transfer of shares from one Demat account to another Demat account held by the same person.
- Inter-Depository Transfer - It is the transfer of shares between two different depositories, i.e. NSDL and CDSL.
- Off-Market Transfer - It is the transfer of shares that takes place outside the stock exchange platform, usually between two parties through a broker.
- On-Market Transfer - It is the transfer of shares that takes place through the stock exchange platform, usually between two parties through a broker.