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Transmission of shares refers to the process of transferring ownership of shares from one person to another without a sale or purchase transaction. This transfer typically occurs due to specific events or circumstances, such as the death of a shareholder, inheritance, or legal requirements. The primary objective of transmission of shares is to ensure that the rightful owner or beneficiary gains control of the shares. Here are some key aspects of share transmission: Death of a Shareholder: The most common reason for share transmission is the death of a shareholder. When a shareholder passes away, their shares need to be transferred to their legal heirs or beneficiaries as per their will or applicable laws of inheritance. Inheritance: Share transmission often involves the transfer of shares to legal heirs or beneficiaries mentioned in the deceased shareholder's will. In cases where there is no will, inheritance laws and legal procedures determine how the shares are distributed among the heirs. Succession Certificate: To facilitate share transmission after a shareholder's death, the legal heirs may need to obtain a succession certificate from a competent authority, such as a court. This certificate establishes their right to inherit and manage the deceased shareholder's assets, including shares. Probate: If the deceased shareholder left a will, the process of obtaining probate from the relevant court may be necessary. Probate is a legal confirmation of the will's authenticity and the executor's authority to distribute assets as specified in the will, including shares. Transfer of shares: The process of share transmission typically involves submitting the necessary documents and forms to the company in which the shares are held. These documents may include the death certificate of the shareholder, the succession certificate or probate (if required), and a request for transmission in the prescribed format. Transfer of Shares: Once the company receives the required documents and verifies their authenticity, it updates its records to reflect the new ownership. The shares are then transferred to the name of the legal heirs or beneficiaries. No Sale or Purchase Involved: It's important to note that share transmission does not involve the sale or purchase of shares; instead, it's a legal transfer of ownership. The shares are transferred at their current market value to the rightful owner(s). Stamp Duty and Taxes: Depending on the jurisdiction and the value of the shares being transmitted, there may be stamp duty and tax implications. These should be considered and fulfilled as part of the transmission process. Share transmission is a legal procedure that ensures the smooth transfer of ownership when a shareholder passes away or when shares need to be transferred to legal heirs or beneficiaries. It's important to follow the applicable legal and regulatory requirements to facilitate this process correctly.

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