Share transmission

Share transmission is a mechanism by which the title to shares 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 certificate
• Share forfeiture
• Stock transfer agent

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