Procedure to change the shareholding of directors

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I know a company who has two directors with their shareholding of 99% and 1 % respectively. Now the directors want to change the shareholding. What is the relevant form and the procedures??? Kindly let me know.

Replies (3)

For Internal Transfer just share transfer form is required.

In case new issue of share form 2 is required.

Hi Sanjeev,

 

As correctly said by Hardik, only transfer deed is required for transfering share.

Submit duly stamped transfer deed (stamp value @ 0.25% of total consideration) to Company. Company will approve the transfer in Board Meeting and make necessary entries in register of members and share transfer.

If change in shareholding is by additional allotment of shares, Company need to pass special resolution to that effect and Form 2 is required to file with ROC.

Regards

Jaideep Pandya

Agree with jaideep except the point that a S/R is needed because it needed only in the case of public companies. But the descripttion provided by the Sanjeev shows that he was talking about a pvt. co. So S/R is required.


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