Manager - Finance and Accounts
58693 Points
Joined June 2010
There is no restriction under the Companies Act, 2013 on selling shares of an unlisted public company at a price above book value, as long as:
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The shares are not subject to any lock-in or contractual restriction (e.g., shareholder agreement, investment agreement, etc.).
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The Articles of Association do not impose pre-emptive rights or transfer restrictions requiring Board approval or offer to other shareholders first.
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Proper transfer procedures under section 56 are followed (execution of share transfer form — SH-4, payment of stamp duty, updating of register of members, etc.).
✅ Conclusion:
Under company law, sale above book value is perfectly fine — share price is a matter of mutual agreement between buyer and seller.