Transfer of shares means transfer of ownership of the shares by one person to another. It may be an existing member of company or to outsiders. Section 44 of companies Act, 2013 also says that shares are movable property which can be transferred subject to Article of Association (AOA) of company.
Difference between Transfer and Transmission of Shares?
Transfer and transmission both are different from each other, let’s discuss how they are different from each other:
Transfer of shares take place by the voluntary act of transferor in which one member can voluntarily transfer its shares to another but transmission is a result of operation of law.
In case of transfer we need to pay stamp duty by executing share transfer deed in SH-4, but in transmission we don’t need to pay stamp duty.