Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Transfer of share in pvt. co.

341 views

Save Share

Shefali Gupta

104 Points Posted on 20 March 2023

one existing shareholder out of 4 shareholders of a private limited company wants to transfer the shares to the outsiders and the other remaining 3 shareholders wants to transfer the shares to the existing shareholder and take a exit. Can it be executed sh-4 on the same day that entry of outsider and exit of remaining existing shareholder.
please suggest

Replies (4)

Quick Summary

This discussion explores the process of transferring shares in a private limited company. It addresses scenarios where one shareholder wishes to sell to an outsider while the remaining shareholders want to exit by transferring their shares to an existing shareholder. The advice suggests this can be executed, provided it aligns with the company's Articles of Association, and may require separate Board Resolutions for each transaction.

Chirag

Professional

1979 Points Posted on 24 March 2023

I think there is no bar ,You have to go according to AOA...But SH 4 will be different for Transfer by Shareholder to Outsider and Remaining Shareholders to Existing Director ,It will be better if proposition is put before Board for Outsider Shareholder and take their nod