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
(Expert)
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:
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
(Expert)
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.
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
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Capital Gail Exemption Certificate
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Transfer of Physical Stock Between Two Proprietorship Concerns
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Accounting treatment of AMC alongwith the purchase of Laptop
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
