Question
Transmission of shares.

Answer

  • Transmission of shares means the transfer of the title of shares by the operation of law.
  • When the shares of a member are automatically transferred to another person on the death, insolvency, or insanity of a member it is called Transmission of shares.
  • Transmission of shares is an involuntary action.
  • There is only one party i.e., a legal heir who indicates the process of transmission.
  • The legal heir or official receiver need not pay any consideration for the shares.
  • There is no need to submit an Instrument of Transfer of pay stamp duty.

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