- 4 Marks
Question
The shares of a company represent the unit of ownership in the company. State the difference between “transfer” and “transmission” of shares. (4 Marks)
Answer
- Transfer of Shares: This occurs when a shareholder voluntarily sells or gives away their shares to another person. The transaction involves a deliberate action where the original shareholder and the new shareholder agree to the transfer.
- Transmission of Shares: This refers to the transfer of shares that occurs due to the death of a shareholder or other legal reasons, such as bankruptcy. In this case, the shares automatically pass to the legal heirs or representatives without a voluntary act by the original shareholder.
- Tags: Share Transfer, Share Transmission
- Level: Level 1
- Topic: Company Law
- Series: NOV 2012
- Uploader: Theophilus