SHARE TRANSFER IN PVT. LTD.CO.
This query is : Resolved
Guest
Guest
(Querist)
14 July 2011
WHAT IS THE PROCEDURE FOR TRANSFER OF SHARES IN PRIVATE LIMITED CO.???
I HAVE FILLED FORM 7B..DO I NEEDED TO SUBMIT IT TO ROC????
IS IT COMPULSORY TO FILL 7B IN TRIPLICATE AND GET STAMPED ALL 3 COPIES???
I HAVE FILLED FORM 7B..DO I NEEDED TO SUBMIT IT TO ROC????
IS IT COMPULSORY TO FILL 7B IN TRIPLICATE AND GET STAMPED ALL 3 COPIES???
CS VENKATARAMANAN S
(Expert)
14 July 2011
Dear Friend,
Before doing that check the articles restricting the shares. if there is no restriction there is no problem. You didnt mention the form of shares. If it is not in physical form, Share transfer form should be filled and duly stamped must be submitted to the company. The company in turn
1) Conduct a Board meeting to pass necessary resolution for allotment.
2)File form-2 with ROC with list of allottee.
Before doing that check the articles restricting the shares. if there is no restriction there is no problem. You didnt mention the form of shares. If it is not in physical form, Share transfer form should be filled and duly stamped must be submitted to the company. The company in turn
1) Conduct a Board meeting to pass necessary resolution for allotment.
2)File form-2 with ROC with list of allottee.
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CA Sumat Singhal
(Expert)
15 July 2011
A brief summary of provisions regarding transfer of shares.
(i) Arrange share transfer deed (Form 7B). It should be endorsed by the prescribed authority. This deed can also be used for the transfer of debenture.
(ii) Get the transfer deed duly executed both by the transferor and the transferee as desired by sections 108 and 109 of the Act and the Articles of Association.
(iii) The transfer deed should bear stamps according to the Indian Stamp Act and Stamp Duty Notification in force in the State concerned. The present rate of transfer of shares is 25 Paise for every one hundred rupees of the value of shares or part thereof.
(iv) Do not forget to cancel the stamps affixed on the transfer deed at the time or before signing of the transfer deed.
No need to file to ROC only to company then The company in turn notify to other members as regards the availability of shares and the price at which such share would be available to them along with the time limit within which they should communicate their option to purchase shares on transfer.
Such price is generally determined by the directors or the auditors of the company.
If none of the members comes forward to purchase shares then the shares can be transferred to an outsider and the company will have no option, other than to accept the transfer.
(i) Arrange share transfer deed (Form 7B). It should be endorsed by the prescribed authority. This deed can also be used for the transfer of debenture.
(ii) Get the transfer deed duly executed both by the transferor and the transferee as desired by sections 108 and 109 of the Act and the Articles of Association.
(iii) The transfer deed should bear stamps according to the Indian Stamp Act and Stamp Duty Notification in force in the State concerned. The present rate of transfer of shares is 25 Paise for every one hundred rupees of the value of shares or part thereof.
(iv) Do not forget to cancel the stamps affixed on the transfer deed at the time or before signing of the transfer deed.
No need to file to ROC only to company then The company in turn notify to other members as regards the availability of shares and the price at which such share would be available to them along with the time limit within which they should communicate their option to purchase shares on transfer.
Such price is generally determined by the directors or the auditors of the company.
If none of the members comes forward to purchase shares then the shares can be transferred to an outsider and the company will have no option, other than to accept the transfer.
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