The share transfer is the intentional conferment of a holder’s title in shares to a receiver. The holder is called the transferor while the receiver, is the transferee. The transfer is executed by way of a transfer deed and the transferor’s liability no longer exists upon the transfer. Shares at a public company can be transferred freely with the exception that the company may prevent it.

On the other hand, the transmission of shares occurs where there is an operation of law or the holder is deceased, insolvent, or mentally unfit. Here, no transfer deed is required and the title passes to the legal heir or an assignee. Liability on the shares also shifts to the new holder. Unlike a transfer, this is involuntary as it is initiated by an event in the life of the transferor.

Documents for the transfer of shares must be delivered to the company bearing such details as the name of the transferee, their address, and occupation if any. A certificate or letter of allotment must also be presented as evidence of movement of title in securities. For transmission, the transferee must present proof of entitlement. Documents such as a court order, a will, a death certificate are relevant. Consult business legal consultants or your attorney for more information.