Transfer of share in a private company
This query is : Resolved
Sumit Bansal
(Querist)
22 November 2012
i am holding share in a private company and now i want to sell my share, but no oneis interested in buying the share of the company as company is liable to purchase the share
Ajay Mishra
(Expert)
22 November 2012
Hi
No, company will not purchase its own shares voluntarily. It is the duty of your to discover buyer.
No, company will not purchase its own shares voluntarily. It is the duty of your to discover buyer.
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deepali agarwal
(Expert)
22 November 2012
Agree with Ajay ji...Its ur duty to promote ur company...
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Sumit Bansal
(Querist)
22 November 2012
ok deepali but i intimate the company for such trf of share and if in future if comapny issues some share then company is liable to ask me that whether u r interested or not.
Sumit Bansal
(Querist)
22 November 2012
thanks ajay sir for giving u r opinion
Ajay Mishra
(Expert)
22 November 2012
Its my pleasure dear Sumit.....
One think,I wan to clear at the time of new allotment the company will not give any option to other members to take shares.
Shares will be issued to investor who make investment in the company for shares.
One think,I wan to clear at the time of new allotment the company will not give any option to other members to take shares.
Shares will be issued to investor who make investment in the company for shares.
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deepali agarwal
(Expert)
22 November 2012
ok...then wt r u trying to ask???
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Sumit Bansal
(Querist)
22 November 2012
OK Ajay sir n deepali but actually problem is that i am holding a share in a company but such company is incorporated before partition and after partition the members are divided into 2 group who are holding shares as ealier i offered them if u are interested u can sell me, but they are not interested in that and i have no objection as i cannot enforse anyone to sell me. But when i want to sell the shares to them they are not buying it so i am finding a legal route to come out.
Ajay Mishra
(Expert)
22 November 2012
Hi
You can not force any person whether it is existing member or any person to buy shares of your. You only make a request to the company that if they have buyer to purchase then give information.
Generally articles contain the details provisions as regards the procedure for transfer of share. Usually following steps shall be followed by a private company to give effect to the transfer of shares:
a) Transferor should give notice in writing for his/her intention to transfer his/her share to the company.
b) The company in turn should notify to the members as regards the availability of shares and the price at which such share should be available to them.
c) Such price is generally determined by the director or the auditors of the company.
d) The company should also intimate to the members, the time limit with in which they should communicate their option to purchase shares on transfer.
You can not force any person whether it is existing member or any person to buy shares of your. You only make a request to the company that if they have buyer to purchase then give information.
Generally articles contain the details provisions as regards the procedure for transfer of share. Usually following steps shall be followed by a private company to give effect to the transfer of shares:
a) Transferor should give notice in writing for his/her intention to transfer his/her share to the company.
b) The company in turn should notify to the members as regards the availability of shares and the price at which such share should be available to them.
c) Such price is generally determined by the director or the auditors of the company.
d) The company should also intimate to the members, the time limit with in which they should communicate their option to purchase shares on transfer.
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Sumit Bansal
(Querist)
22 November 2012
Thanks sir
Ajay Mishra
(Expert)
22 November 2012
My Pleasure dear Sumit........
Sumit Bansal
(Querist)
22 November 2012
in such situation company can buy back its share as per section 77A, 77AA.
23 November 2012
Mr Sumit feel thankful to all for such a nice expert advice(s) on the issue particularly to Mr Ajay Mishra.
Buy Back option is done if it is allowed or was termed while issuing the Shares. Generally in case of Private Company if never happens so.
Better and practical route is to find customers amongst present shareholders and/or friends and relatives.
Buy Back option is done if it is allowed or was termed while issuing the Shares. Generally in case of Private Company if never happens so.
Better and practical route is to find customers amongst present shareholders and/or friends and relatives.
Ajay Mishra
(Expert)
23 November 2012
Thanks Mr. Bajaj.......
Buy back is action of company not by a shareholder.
The company can buy back under certain circumstances.
Buy back is action of company not by a shareholder.
The company can buy back under certain circumstances.
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