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Effective date of share transfer

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Malathi.S

Trichy

65 Points Posted on 26 April 2021

Hi,

what would be effective date of share transfer, is it a date of meeting where share transfer approves or a date mentioned in SH 4.

please clarify.

Replies (2)

Quick Summary

This discussion clarifies the effective date of a share transfer. It explains that a transfer is only truly effective once the company registers it and the transferee's name is entered into the Register of Members (ROM). While board approval or the date on the SH 4 are important steps, the legal effectiveness hinges on the company's official registration of the transfer.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 26 April 2021

Transfer becomes effective only on registration of such shares by the company. The company shall deliver the share certificate within 1 month from the receipt by the company's instrument related to transfer. The instrument of transfer must be endorsed with the respective name of the transferee.