The difference between transfer and transmission of shares and obligations

The word “to transfer” It is an act of the parties by which the title of property is transferred from one person to another. (Person also includes legal entity, for example, company, corporate body, etc.)

The word “transmission” refers to the transfer of title to the parties by operation of law.

Transfer of shares means a voluntary transfer of ownership of certain shares from one person to another by presentation to the company of a duly sealed and executed instrument of transfer, by or on behalf of the transferor and the transferee containing their names, addresses and occupations along with the share certificates related to the shares to be transferred, while transfer, on the other hand, involves the passing of ownership into shares by operation of law in the event of events such as death, insolvency or folly of a shareholder/bondholder, etc.

A transfer of shares or debentures is a procedure by which an existing shareholder or debenture holder transfers his share(s) or debentures to an existing shareholder or to any other person, depending on the transaction and the circumstances. of the case

Under the law, any person has the right to transfer his share(s) and/or debenture(s) to any existing one or to any other person; however, a private company may through its bylaws (AOA) restrict the right to transfer the shares of the company provided that all relevant provisions of the company’s Ordinance and AOA are complied with and due process is followed.

Provisions of the Law Related to the Transfer and Transmission of Shares and/or Debentures:

Articles 74 to 81 of the Ordinance deal with issues governing the transfer and conveyance of shares and/or debentures.

Limitation to the Transfer of Shares and Debentures:

Every company must dispose of the shares, debentures or stock debentures within forty-five days following the request.

Company shall, within 30 days or, where the transferee is a central depository company, within five days from the date the instrument of transfer is filed with Company, notify the Company of the defect or invalidity transferee who, after eliminating the identified defect, must re-file the deed of transfer with the company.

These terms, in relation to a limited liability company, will be subject to the limitations and restrictions imposed by your AOA, if any.

The company will not record the transfer of shares or debentures unless the transfer instrument duly sealed and executed by the transferor and the assignee has been delivered to the company.