transfer of shares

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seema singla (Querist)
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03 November 2008 A shareholder of a pvt.ltd co. wants to transfer its shares. The size of the co. is very small having authorised and paid up capital of Rs. 100000 only. Can anybody plz tell me the exact procedure to be followed for the transfer.
Further, what about the stamp duty. what are the circumtances when stamp duty is to be paid for transfer of shares.
Please ans
thanks

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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03 November 2008 Transferor and Trasferee to execute a share tranfer deed in Form 7B as prescribed under section 108. As regards stamp duty for the deed refer to the state stamp Act to which your company falls into.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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03 November 2008 Before executing the Transfer Deed on Form 7B, the provisions contained in the AOA must be followed. Please note that the shares of a Private Company are not freely transferrable. Existing shareholder is supposed to intimate the company for seeking approval of the Board before selling or transferring the shares otherwise in favour of anybody giving brief particulars of the transferee. And it is after seeking the said approval/NOC that the shareholder is entitled to execute the transfer deed.

seema singla

seema singla (Querist)
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04 November 2008 Sir,
Thanks for the infromation provided by you all.
Further I want to know whether the transfer deed is to be regd or sent to ROC or any another authority and any other process to be followed.
Pls ans.
Thanx

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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04 November 2008 The transfer form has to be presented (before execution)to the ROC for dating purposes.

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