Free transferability of share is one essential condition for Company form of business, The below is the steps to transfer the shares of the company.
1. Intimation
a. Transferor should give a notice in writing for his intention to transfer his share to the company.
2. Duty of The Company
a. The company in turn should notify to other members as regards the availability of shares and the price at which such share would be available to them, with time limit
b. If none of the members comes forward to purchase shares then the shares can be transferred to an outsider and the company will have no option, other than to accept the transfer.
3. Execution form
a. In Form SH-4 duly executed both by the transferor and the transferee.
i. Should be-Duly stamped
ii. Dated Specifying the Name
iii. Father Name etc.
4. Time Period for deposit of Instrument for Transfer With Company
a. SH-4 to be delivered within 60 days to the company
b. Transfer stamp to be affixed of 25p per Rs. 100
5. Share Certificate
a. Share certificate must be lodged with the company
6. Board Resolution
a. Then company will check the deed and documents then pass resolution for acceptance of same in the Board Meeting of the Company.
7. Issue of Share Certificate of Transfer
a. The Company will within one month of passing of Board Resolution will issue share certificate.
8. Other Points
a. There is no filing to the ROC
b. Articles of private company shall restrict the right to transfer the company’s shares
Again don’t worry, we are there, transfer seems complex but is an easy process.
Regards
CA Umang Jain
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