Procedure for Transfer of Shares of a Private Company

Shweta | Last updated: 31 December 2022

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Transferring shares in a private limited company is crucial for bringing in new investors or changing ownership. Before proceeding, it's essential to review the company's Articles of Association (AOA) for any restrictions, such as pre-emption rights, which require offering shares to existing shareholders first. The process involves notifying the company, establishing a share price, and formally executing a share transfer deed, followed by stamping and submission to the company for issuing a new certificate.

A private limited companys ownership is decided by the Companys shareholders. The share of the private limited company would need to be transferred in order to accept new investors or transfer ownership of the firm. This article examines the share transfers for private limited companies. Share Transfer Restrictions in AOA A private limited company is viewed as a closed corporation of its members, much like a partnership firm. As a result, limits on the transfer of shares in a Private Limit

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About the Author

Shweta

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Shweta is a Company Secretary LLB practicing in the domain of Corporate Laws Securities Market spectrum. Before practicing, she had successful stints with Hitachi Metglas and Mimaki Kanpur (a Japanese JV) where she was responsible for all the legal secretarial matters. She possesses 10+ years of active experience ad ... Read more

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