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What is transmission of shares?

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What is transmission of shares?

Expert Answer
Answered 18 Apr 2026
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The transmission of share under Companies Act 2013 refers to the automatic transfer of ownership of shares by operation of law, typically in cases such as death, insolvency, or lunacy of a shareholder. Unlike transfer of shares, transmission does not involve a voluntary act or consideration. The procedure begins when the legal representative, nominee, or successor of the deceased shareholder intimates the company about the event (e.g., death of the shareholder). The claimant must then submit relevant documents such as the death certificate, probate of will or succession certificate, or proof of nomination (if a nominee is registered).

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