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Sale of shares in private limited company

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Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2010 I have queries regarding Private Limited Companies Law for the following:

Once a shareholder gives in writing to the company his intention to sell his shares, can he reverse his intentions and not sell his shares to other shareholders for the price set by the auditors? Or is he bound by law to sell his shares even though he has a better offer from a third party?

Ankur Garg

Ankur Garg (Expert)

13 August 2010 Hi,

For sell or transfer of shares a shareholder is required to file transfer deed after filling the name of transferee. Such transfer deed is required to be approved by the board of directors before affecting the transfer.

If the board approved the transfer then it is very difficult to reverse the same. However request may be withdrawn before approval of the board.

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Regards

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