What is the difference between transfer and transmission of shares?
Correct answer: A. Transfer is voluntary, while transmission occurs by law
- A. Transfer is voluntary, while transmission occurs by law
- B. Transfer occurs by law, while transmission is always voluntary
- C. Transfer applies only to directors, while transmission applies to auditors
- D. Transfer changes debt into equity, while transmission changes equity into debt
Explanation
A transfer is a voluntary act by which one person conveys shares to another. Transmission takes place automatically through events such as death, insolvency or succession under law.
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About Company Law Basics
Company law covers incorporation, separate legal personality, limited liability, shares, the memorandum and articles of association, and the powers and duties of directors. It also includes shareholder meetings, resolutions, company records, audit, winding up and the differences between a registered company, partnership and sole proprietorship.
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