Transfer of Shares
Transfer of shares is a voluntary process of transferring the ownership rights in a company from one person to another.
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Transfer of Shares
A company is owned and controlled by individuals or corporate bodies by holding shares in the company, who are collectively known as shareholders of the company. The shares are considered as units of ownership in a company and it can be transferred from one person to another like any movable property.
Transfer of shares can be voluntarily done by the shareholders of company by transferring the title of shares from one party to another. The shares are transferred through a contract or arrangement between two or more persons. The shares of a Public Limited Company are freely transferrable whereas shares of a Private Limited Company are transferable subject to condition or restriction as specified in the Articles of Association (AOA) of company.
Advantages of Transfer of Shares
Minimum Requirements for Transfer of Shares
What is included in our Transfer of Shares package?
Procedure of Transfer of Shares
Documents Required for Transfer of Share
Time Limit for Transfer of Shares
- The duly executed share transfer deed (Form SH-4) shall be delivered to the company within a period of 60 days from the date of execution by the respective party
- If the Company has no objection, it shall record the share transfer and deliver the share certificates within 1 month from the date of request for transfer.
- The Company may also refuse to register the transfer of shares on certain valid grounds within a period of 30 days from the date of request for share transfer. The concerned party can approach Tribunal against such refusal.
- In case of any default in complying the provision of the law, the company and every officer of the company who is in default shall be liable to a penalty of Rs. 50,000.
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