Legal English “Peter’s Pills”: “Transfer of shares vs transmission of shares”

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Today today we look at the difference between the transfer of shares and the transmission of shares. Transfer of shares refers to the process of voluntarily transferring ownership of shares from one person to another. This typically occurs when an individual sells their shares to another person, or when they give them as a gift. The transfer process requires both the transferor (cedente) and the transferee (cessionario) to sign a share transfer form, which is then submitted to the company for registration.

Once the transfer is registered, the new owner is listed as the shareholder and is entitled to all the rights associated with ownership, such as voting rights, dividends, and capital gains (plusvalenze). On the other hand, transmission of shares refers to the process of transferring ownership of shares from one person to another without the need for a voluntary transfer. This occurs when the original owner of the shares passes away (muore), becomes bankrupt or insolvent, or is declared mentally incapable. In such cases, the shares are transmitted to the legal heirs (eredi), creditors, or representatives of the original owner.

The process of transmission typically requires a legal process in which a court confirm the legal heirs of the deceased (defunto) or in which a bankruptcy court identifies the creditors entitled to (che hanno diritto a) receive the shares. In summary, transfer is a voluntary process that occurs when an individual decides to sell or gift their shares, while transmission is an involuntary process that occurs in specific circumstances, such as death or bankruptcy and over which the original owner has no control. Thank you, and see you next time for more Peter’s Pills to improve your legal English.