Share transfer period

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2013 Dear Members,
A Private company called its AGM on 07th sept 2012. Few days before the AGM date, one member desired to transfer few of its shares. As no existing member was willing to purchase the shares it was decided to transfer to third person.
A resolution for share split was passed in board meeting on 01st Sep 2012 and split was carried out, however the transfer took place on 10th Sep, 2012 (i.e. after AGM)
Wish to know whether this action of share split just before agm was legally ok.
Also wish to know what should be time gap between share split and transfer practically.

Thanks in Advance

Ajay Mishra

Ajay Mishra (Expert)
Follow

02 January 2013 Hi

Yes. As on date of AGM the old shareholder will exist and the details of such shareholders will be given in Annual Return, because as on date of AGM transfer was not registered by company.

Generally the time period for such activity is not defined. But the period of Instrument of transfer (Form-7B) is 2 months from the date of presentation.

Message likes : 1 times

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