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Transfer of share

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Sandeep Balu Shedbale

student

28 Points Posted on 19 May 2016

The Private Ltd issue shares to outsider with right of Freely Transfer of shares? A) If Yes , then the Procedure, If any Draft of MOU is executed between co & outsider B)if no, then how we issue of these shares with right to freely transfer?

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Jatin Bajaj

1920 Points Posted on 19 May 2016

In case of Transfer of Shares of a Private Company, First of all check the Articles of the Company weather it contains any restriction or not.

As per Right of Pre- emption Such shares shall be offered to existing members of the Company, at a price detemined by the Directors of the Company or by auditor. if no existing member is willing to take the share then shares are transfered to outsider.

Shares are sold to other members at the fair price determined by the Directors or other auditors of the Company.

An instrument of transfer along with transfer deed shall be in physical Form SH5 and every instrument of transfer shall be delevired to the Company within 60 days of execution.

Transfer of Shares can only be made and valid with prior consent of Board of Directors and Shareholders