Time limit to approve share transfer

Sumit Jaiswal (Company Secretary) (818 Points)

27 February 2013  

 

Can anyone tell me the time limit within which the company has to approve the share transfer i.e. the board of directors has to approve the transfer by passing a board resolution, after the transfer deed is presented to the company after execution?

 

Suppose the date of stamping on the share transfer deed is 2nd January. The transferor and transferee executed the share transfer deed and mentioned the date as 11th February.  The transferee delivered the duly executed transfer deed to the company on 27th February. Then, what should be the maximum time limit within which the company should pass board resolution for recording the transfer and deliver the duly share certificates duly signed to the transferee?

The company in question is a private limited company.