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Query for splitting and transfer of shares

meenakshi (CS) (39 Points)

20 February 2017

shareholder A wants to transfer his shares to director B and C ...then what is the procedure and formalities required to be done and please share the formats for reference... shareholder A reside in delhi and director B and C reside in lucknow

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5 Replies

Vandana J Doshi (Practising Company Secretary) (12562 Points)
Replied 20 February 2017

1. Make an application to the Board of directors of the Company for splitting the shares as desired.

2. On receipt of the new certificates, execute share transfer form and apply for the transfer to the Company.

meenakshi (CS) (39 Points)
Replied 20 February 2017

so we have to pass two br for splitting and then share transfer and then SH-4 to be executed..

in private co if cerificates are not there then letter will be sufficent from shareholder to company regarding splitting and then transfer

Vandana J Doshi (Practising Company Secretary) (12562 Points)
Replied 20 February 2017

certificates are required. otherwise what proof does the member have of his/her holding.

Certificates are to be enclosed for making application for both splitting and transfer.....details of the certificates are to be entered in the forms.

Jatin Bajaj (CS) (2928 Points)
Replied 21 February 2017

as per section 56 of the companies act 2013, a notice shall be made by transferor along with the declaartion that the shares of appropriate value shall be transfered from transfereor to transfree

pass the Board resolution for the transfer of shares

execute the share transfer deed in Form SH 4 and pay the stamp duty of appropriate value. .25 paisa for every 100rs or part thereof.

Print the share certificate as per form SH 1or endrose on the back of share certificate to the transfree . share certificate shall be duly signed by 2 directors and 1 authorised signatory of the Company.

Make the entry in register of member in form MGT 1 and also in Register of Transfer.