Posts

Showing posts with the label transmission of shares

All you need to know about the Transfer and Transmission of Shares

Image
Stakeholders, including executives and sometimes employees, can own shares in a company. Sometimes, they receive shares as part of a reward program, while they purchase them other times. Shares hold more value than anything else since it gives a sense of ownership. Let’s say a company purchases 100 shares from the market. It has six shareholders. Five received 16 shares each, but the sixth person became eligible for 20 shares. So, considering the shares and divided policies 101, we can say that the shareholder with 20% ownership of the company has more rights than others. Shares are a type of asset that one can liquify, foreclose on, prematurely invest in, and perform several other functions. Once a person decides to leave the company or resigns from the shareholder post, they sell the shares under their name. If someone sells 20 shares, the equivalent number of shares will be added to the liquidity pool. It will not have any ownership, meaning another person can purchase it with

Claim Unverified Dividends and Shares After Being Transferred to IEPF

Many a time it is observed that several shares in any company remain unclaimed or unpaid for a long period. The reasons could vary, however. Sometimes people are not aware of the shareholding, or they could have forgotten the shares, or even the shareholders have expired. Sometime before, the shareholding person has no clue about claiming such shares and in many cases, they would have been transferred to Investor Education and Protection Fund ( IEPF ). But before proceeding towards the process of claiming the unpaid or   unclaimed dividend and shares , we should know what IEPF is. About IEPF Considering the problems regarding the claiming of unclaimed and old shares, the Ministry of Corporate Affairs(MCA), Government of India, has introduced an authoritative body of Investor Education and Protection Fund ( IEPF ) under section 125 of Company Laws, 2013. This body has the responsibility of educating people about the refunds and administration of unclaimed dividends and helping them to m

Importance Of Putting Nominee For Your Investments

  Whenever we begin our investment journey, all we are concerned about, is completing the paperwork, getting the account opened, and raking in the big bucks. Seldom does our eye go to the little column that asks us to put a nominee for our investments. While investing, having to put down a nominee may seem unimportant but your next of kin will be eternally grateful if you do so. In the absence of them being listed as a nominee, the next of kin has a hard time claiming the recovery of shares and any other assets attributed to the deceased. A number of financial agencies are beginning to make assigning a nominee compulsory, but most investors continue to ignore the practice. What is it A nominee is typically an individual who has been designated by the asset’s owner to be entitled to his asset in the case of the owner’s death. The title, the property, and the benefits all accrue to the nominee in such a case. Appointing one ensures that your shares get passed on to your trusted member wi

What Separates A Share Transfer From A Share Transmission?

Image
  A transfer is defined as the moving of an asset. Physical mobility, asset ownership, or both may be considered movements. This movement may be voluntary or mandated by legislation in the case of securities. In order to clearly explain the concept of the Transfer and Transmission of Shares and make them easier to distinguish from one another, we must first learn the meaning of some terms that are frequently used in connection with them. The transfer of shares occurs through a contract and is a voluntary act on the part of the shareholder. The transfer of shares occurs as a result of the law's operation upon the death of the shareholder or in the event that the holder becomes bankrupt or insane. Definition of Share Transfer The intentional transfer of ownership of the shares between the transferor (one who transfers) and the transferee is referred to as a transfer of shares (one who receives). A public corporation's shares can be freely transferred unless the company has a goo