Share transfer of private company

Pvt ltd 224 views 2 replies

Piyush Shah

Director

30 Points Joined August 2016

Hi,

I and my mother has 50% each holding in a private limited company (registered in Jaipur). We both hold 5000 shares each (Face Value INR 10) and we are the only two Directors in the company. One of my known associate has shown interest in investing in the company by acquiring ~30% shares. We intend to transfer 15% each holding. Need to know the procedure regarding the transfer share.

What I know:

1) A notice from shareholder to Company's BoD for intention to share transfer (have the specimen draft as well. got from this website only)

2) Company will issue notice to all shareholders for availibility of shares to other shareholder. Need the specimen example to highlight shares' availibility, price fixation and time period in which other shareholder can come forward and buy if they wish.

I am not clear after this what stesp should be taken

SH-4 should be filled when, where i get this registered, do i need to submit copy to MCA etc etc.

Please help. Thanks Prashant

Replies (2)

sourabh gupta

Assistant Company Secretary

57 Points Joined July 2011

Dear Mr, Piyush,

Yours being a Private company wherin you and your mother are the only shareholders and directors, you dont have to follow the detailed procedure as u have read. pls follow the following simple steps to effect the share transfer:

1. Download word format of SH 4 from Google and take a print out(2 copies ) one for you transfering and the other one for your mother transfering.

2. Fill in the required details.

3. in the form you will be required to fill details like

Kind of capital: pls fill it as equity

Nominal value of eachunit of security/Amount called up per unit of security/Amount paid up per unit of security: fill it as rs. 10

No. of securtites being transfered: 1500

Consideration Received: 15000 (assuming that you are transfering it on face value of Rs. 10)

Distinctive no: 01 to 1500 in your SH 4 and 5001 to 6500 in your mothes sh 4

Folio No for youself as 1 and for mother 2

Corresponding share certificate no: 001 in ur case 003 in ur mother case

get ur signature witnessed by anyone (it can be anyone)

Fill in the details of tarnsferee

Affix Share transfer stamps of requiuste amount on the transfer form, it will depend upon the state your company is situated(only stamps that are meant for share transfer shall be attached ,DONOT AFFIX POSTAL STAMP )

For the transferee put folio no, as 3.

then at the end ofthe form you can sign as director(the box which is meant for office use)

Assuming that you have not printed share certificates, now print them as follows

certificate no 1: 01 to 1500

02: 1501 to 5000

03:5001 to 6500

04: 6501 to 10000

by doin this way u wont be required to unneccsarily split the share certifiactes.