share transfer

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Rajya Lakshmi (Querist)
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15 January 2010 Dear Sir,

Please advise me on the following:

One Director-cum-Shareholder is holding 900000 shares wants to transfer 800000 shares to his other family members.

My query is which of the following procedure is correct:

1. split the share certificate into 5 in the name of the Director and then Endorse on the backside with the family members names and distinctive nos.

or

2. Issue the new share certificates directly on the family members with continuous serial number

Please Advise and provide me the draft resolution

Also please advise me whether 2nd option is possible

Thanks & Regards
Rajya Lakshmi

CS Vandana Kacholia

CS Vandana Kacholia (Expert)
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15 January 2010 well assuming that only one share certificate has been issued for 900000 shares then in that case you have to split up the certificate in 2 new share certificate i.e. one for 8,00,000 shares on the name of tranferee and second for 1,00,000 shares on the name of tranferor, so second option is possible.

Board Resolution:

The Chairman informed the Board that request was received from one of the shareholders of the Company for Split of Share Certificate. The matter was discussed and following resolution was passed in this connection:

â€œRESOLVED THAT Share Certificate No. ....in the name of Mr. ...........bearing Distinctive No. ......... To ....... aggregate of .......... shares be and is hereby split into ........ certificates as follows:

Folio No.,Share Certificate No., Name of Shareholders, No. of Equity Shares, Distinctive No.â€™s
...................................................................

â€œRESOLVED FURTHER THAT the old share certificate be and is hereby cancelled and new share certificates as detailed above be and is hereby issued, signed by any two directors and Authorized Signatory under the Common Seal of the company in conformity with Articles of Association of the Company.â€

Regards

Rajya Lakshmi

Rajya Lakshmi (Querist)
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15 January 2010 Thanks

Yes. You are right - there is only one share certificate.

But my question is as there are 5 transferees there should be 5 transfer deeds accompanied by the share certificate for defacing.

Can I attach one Certificate 5 deeds? or it is necessary to resort to first option in my previous question.

Please Help

Please Help.

Ankur Garg

Ankur Garg (Expert)
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15 January 2010 As per my suggestion go for split of share certificate system. To understand how to exeute split of share certificate download sample share transfer minutes from the link below:

https://www.caclubindia.com/share_files/files_display.asp?files_id=13193

Best Regards

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