Validity of share transfer deed/form ?

For how much time is the share transfer deed valid from the date of its execution ?

After execution they are valid forever. There is no time limit.

Isnt it like that it should be submitted to company for initiating transfer within a timefrane when it is signed by both transferor and transferee?

as per section 108, share transfer deed is valid for two months in case of pvt ltd. co. n non listed pub co.

and for listed co. , it is valid for 12 months or book closure date, whichever is later.

Different views are welcome.

True, validity of share transfer deed In the case of listed company, is at any time before the date on which the register of members is closed, in accordance with law, for the first time after the date of the presentation of the prescribed form to the prescribed authority under clause (a) of section 108(1A) or within twelve months from the date of such presentation, whichever is later.

In any other case, within two months from the date of such presentation.

 

But once share transfer form is executed by both the transferor and transferee complete in all respected then issue of validity lapse. After execution they are valid forever. We can send the deeds to the company for transfer of shares even after say 5 years.

 

Originally posted by : Himanshu Bansal
	Isnt it like that it should be submitted to company for initiating transfer within a timefrane when it is signed by both transferor and transferee?

Dear Himanshu, Time limit of validity of share transfer form is for execution of deeds. Time limit does not mean it should be submitted to the company within validity period. I trust now demarcation is clear to you.

Dear neha

kindly update that Mr. A holding 10 shares in pvt. ltd. he executed share transfer deed in favour of Mr. B 5 years back, but do not send to Company for trasnfer.

Mr. A will continue be member in Company record.

I remember some instance when we submiited share transfer deed to roc for extension of time. Roc charges some money and extended the time. kindly guide us in case wrong. In my view there is time period.

 

Originally posted by : NIRAJ GOEL
	Dear neha kindly update that Mr. A holding 10 shares in pvt. ltd. he executed share transfer deed in favour of Mr. B 5 years back, but do not send to Company for trasnfer. Mr. A will continue be member in Company record. I remember some instance when we submiited share transfer deed to roc for extension of time. Roc charges some money and extended the time. kindly guide us in case wrong. In my view there is time period.

Dear Niraj, Yes, you are right time period is there for validity of deeds and in case we are not able to execute the deeds timely then extension is sought from ROC. In the example elaborated by you, there is no need to get extension from ROC since execution of deeds is within validity of deeds. There is no need to send the deeds to company for transfer in your favor withing validity of deeds. You are very well submit them whenever you desire, as per your convenience. Thanks

dear madam

execution means : enter all details+ get sign by both parties + one witness sign. affix stamp duty + attach share certificate.

its new point to me, many thanks

 

 

The Shares of Limited Companies Can be got transferred with in a period of 12 months or the date of book closure whichever is earlier. If after execution of tranfer deed by transferor the transferee does not get it transferred within this time limit then the validity of the deed can be extended by ROC only.