Share transfer deed

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2012 IS IT COMPULSORY TO EXECUTE SHARE TRANSFER DEED IN CASE OF PRIVATE LIMITED COMPANY HAVING 2 DIRECTORS ONLY. AND ONE OF THEM HAS TRANSFERED SHARES TO ANOTHER DIRECTOR. THEY HAVE NOT PAID ANY STAMP DUTY.WHAT TO DO WITH IT?

Ajay Mishra

Ajay Mishra (Expert)
Follow

13 December 2012 Hi

Yes, Transfer deed is required under section 108.Section 108 provides that a company shall not register a transfer of shares of, the company, unless a proper transfer deed in Form 7B as given in the Companies (Central Government's) General Rules and Forms, 1956 duly stamped and executed by or on behalf of the transferor and by or on behalf of the transferee and specifying the name, address and occupation, if any, of the transferee, has been delivered to the company, alongwith the certificate relating to the shares, or if no such certificate is in existence, alongwith the letter of allotment of the shares:

Ajay Mishra

Ajay Mishra (Expert)
Follow

13 December 2012
Transfer of shares in case of loss of transfer deed:

It has been provided that where, on an application in writing made to the company by the transferee and bearing the stamp required for an instrument of transfer, it is proved to the satisfaction of the Board of directors that the Transfer Deed signed by or on behalf of the transferor and by or on behalf of the transferee has been lost, the company may register the transfer on such terms as to indemnify as the Board may think fit.
In the case of Fox v Martin (1895) 64 LJ CH 473, a registered holder of shares instructor a broker to sell them for cash and signed a blank transfer which he handed to the broker with the share certificates. The broker deposited and transfer the certificates in favour of his banker as security for an advance to himself. It was held that the banker had no title to the shares as against the registered holders.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now