Shares Transfer procedure in a Private Company as per Companies Act, 2013

Rajendra Prasad Gangula CA | Last updated: 23 September 2023

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Transferring shares in a private company requires adherence to the Companies Act, 2013, and the company's Articles of Association. The process involves executing a stamped instrument of transfer (Form SH-4), submitting it with share certificates or allotment letters to the company, and the Board approving the transfer via a resolution. While the company can refuse a transfer under certain conditions, it must notify the parties within 30 days. Upon acceptance, a new share certificate is issued to the transferee, and the Register of Members is updated.

Generally, a private company is guided by its Article of Association. As per Section 2(68) of the Companies Act 2013, a Private Company restricts the transfer of its shares and prohibits invitation to the public to subscribe to any securities of the Company. Transfer of Shares As per Section 5

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About the Author

Rajendra Prasad Gangula CA

Chartered Accountant

CA Rajendra Prasad Gangulais a practicing Fellow Chartered Accountant with an experience of 6 years, Qualified Company Secretary from ICSI, and, Graduated from Badruka College of Commerce, Hyderabad. He is having extensive experience in conducting Statutory audits, Tax Audits, Transfer pricing Audits, and GST Related M ... Read more

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