Legal Question in Credit and Debt Law in India

If I invoke a pledge of shares and subsequently sell those shares to a third party. Will this sale be considered a transfer or a transmission?


Asked on 7/01/16, 11:47 pm

2 Answers from Attorneys

1) Transfer of shares is a voluntary act of a member but Transmission of shares occurs due to the operation of law i.e. in case the member passes away or becomes insolvent.

2) Liabilities of transferor cease on completion of transfer.

3) Adequate consideration must be there.

4) Payable on the market value of shares.

5) In ur case it is transfer only, not to be juxtaposed synonymously.

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Answered on 7/02/16, 2:52 am
Fca Prashant Chavan Expert Edge LLP

02.07.2016

Dear Sir / Madam,

It will be considered as a transmission of shares.

Regards,

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Answered on 7/02/16, 8:34 am


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