Consideration already recieved shares yet to transfer

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2013 sir, if a managing director of a public limited company has paid the consideration (three years ago)for shares to his sister who is shareholder of the same company but the shares are yet to transfer in his name. how can we deal in this matter

Ajay Mishra

Ajay Mishra (Expert)

01 May 2013 Hi

Please check whether share transfer deed has been signed between them and the same is delivered to the company or not.

Because until, the share transfer deed is not deposited with company the company will not register your transfer.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2013 Thank you sir,but if the share transfer deed is not signed and deposited with company then would it be illegal and attract any penalty or there is no problem and we can do it legally now?

Ajay Mishra

Ajay Mishra (Expert)

01 May 2013 Hi

If the share transfer deed or other documents is not signed and it is not submitted with the company, then it will not be considered as transfer, because your name is not entered in the register of transfer of shares or Register of members of the company.

For considering it transfer you should proof the same, only payment of money is not considered for transfer.

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