Transfer of shares in a private limited company
This query is : Resolved
28 July 2013
Is transfer of shares Internal matter of the company or Do we have to file any Form with the ROC??
What is the Procedure for transfer of shares??
Thanks in advance
What is the Procedure for transfer of shares??
Thanks in advance
28 July 2013
Share transfer does not require filing of any form with ROC but the details of share transfer are given in the annual return (Form 20B) which is filed with ROC every year.
S o you dont have to file any specific form but do disclose the share transfer details in your annual return.
S o you dont have to file any specific form but do disclose the share transfer details in your annual return.
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28 July 2013
1) Arrange for share transfer form (Form 7B) which should be endorsed by the prescribed authority.
2) Get the transfer form duly executed both by the transferor (seller) and the transferee (buyer) in pursuance to sections 108 and 109 of the Companies Act, 1956 and the Articles of Association of the Company.
3) 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 stamp duty for transfer of shares is 25 paise for every one hundred rupees of the value of shares or part thereof transferred.
4) The signatures of the transferor and the transferee in the share transfer form must be witnessed by a person giving his signature, name and address.
5) Attach the relevant share certificate or allotment letter with the transfer deed and deliver the same to the company within the two months from the date execution.
6) The company on Lodging the duly executed share transfer deeds shall approve the same in the next Board Meeting.
7) Subsequent to the approval of transfer in the Board meeting, the Share Transfer Register will be updated and accordingly the name of Transferee will appear in the Register of Members of the Company.
It is better to buy form 7B from a form shop. You can also get it from website just type form 7b format in google.
2) Get the transfer form duly executed both by the transferor (seller) and the transferee (buyer) in pursuance to sections 108 and 109 of the Companies Act, 1956 and the Articles of Association of the Company.
3) 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 stamp duty for transfer of shares is 25 paise for every one hundred rupees of the value of shares or part thereof transferred.
4) The signatures of the transferor and the transferee in the share transfer form must be witnessed by a person giving his signature, name and address.
5) Attach the relevant share certificate or allotment letter with the transfer deed and deliver the same to the company within the two months from the date execution.
6) The company on Lodging the duly executed share transfer deeds shall approve the same in the next Board Meeting.
7) Subsequent to the approval of transfer in the Board meeting, the Share Transfer Register will be updated and accordingly the name of Transferee will appear in the Register of Members of the Company.
It is better to buy form 7B from a form shop. You can also get it from website just type form 7b format in google.
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28 July 2013
Procedure for Transfer of shares of the Company:
1. After receiving Transfer Deed(Instrument of Transfer), Share Certificate and other documents, if any.
2. Check all documents is proper and eligible to register for transfer.
3. Call Board Meeting
4. At Board Meeting register the Transfer and made entry in the Register of Members and Register of Transfer.
5. Return the Share Certificate after making entry of transfer therein within 2 months.
6. Make entry in the minutes of Board Meeting.
7. The detail of Transfer from last AGM till the date of AGM should be submitted in Annual Return to ROC in Form-20B.
Procedure for Transfer of shares of the Company:
1. After receiving Transfer Deed(Instrument of Transfer), Share Certificate and other documents, if any.
2. Check all documents is proper and eligible to register for transfer.
3. Call Board Meeting
4. At Board Meeting register the Transfer and made entry in the Register of Members and Register of Transfer.
5. Return the Share Certificate after making entry of transfer therein within 2 months.
6. Make entry in the minutes of Board Meeting.
7. The detail of Transfer from last AGM till the date of AGM should be submitted in Annual Return to ROC in Form-20B.
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28 July 2013
For more details about transfer, go to the following link, it may help you:
https://www.caclubindia.com/articles/details.asp?mod_id=16740
https://www.caclubindia.com/articles/details.asp?mod_id=16740
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29 July 2013
thank you experts for your valuble advise
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