Relevance of the date of transfer deed

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This query is : Resolved

Rupal (Querist)

24 July 2010 The DOI of the company is 06.12.2006 and the date of transfer is 10.02.2006 and the date on transfer deed is 20.12.2005. Is such a practise correct

Jagruti (CS)

Jagruti (CS) (Expert)

24 July 2010 Before the DOI there is no Company exsiting and thus it do not hhave shares.

Thus, transfer before the Incorporation is not vailed

Also for transfer in private COmpany the date of transfer deed cannot exceed 2 months from the date of presenting to COmapny for transfer.

Rupal

Rupal (Querist)

24 July 2010 Date on transfer deed is the date on which it was duly stamped by the ROC

Rupal

Rupal (Querist)

28 July 2010 Date on transfer deed is the date on which it was duly stamped by the ROC

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

21 July 2025 Here’s a clear summary on the relevance of the date of transfer deed with respect to company incorporation and share transfer:

Key Points:
Company Date of Incorporation (DOI):
The company came into existence only on 06.12.2006.
Before this date, the company legally did not exist, so it cannot hold shares or accept share transfers.
Date of Transfer vs Date of Deed:
The date of transfer (10.02.2006) and date on the transfer deed (20.12.2005) are both before the company’s DOI.
This means the share transfer was purportedly done before the company even existed, so it cannot be valid or legally effective.
Validity of Transfer Before Incorporation:
Since the company did not exist before DOI, shares cannot be transferred before the company’s incorporation.
Share transfer must happen only after the company is incorporated.
Date on Transfer Deed vs Date of Stamping by ROC:
The date on the transfer deed is usually the date when the deed was signed or executed.
The date of stamping or registration by ROC (Registrar of Companies) is the date when the document was formally accepted or recorded.
Both dates are important but the date of execution (deed) should be after incorporation in case of share transfers.
Time limit on transfer deed execution:
In private companies, the date on the transfer deed cannot exceed 2 months from the date it is presented to the company for transfer.
Conclusion:
A share transfer dated before the company’s incorporation is invalid because the company did not legally exist then.
The transfer can only be done post-incorporation, and the transfer deed date must comply with applicable time limits.
If such a transfer is done, it should be rectified and re-executed legally after incorporation.

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