Transfer of shares

Others 658 views 2 replies

Dear All,

In respect to transfer of shares of a closely held public limited company, the franking of transfer forms of the qualification shares of directors was done after 3 months from the date of transfer. In this case the date of transfer is to be considered as the date of transfer or the date of franking? If it is date of the date of franking, will the directors be held liable for not acquiring qualification shares within the time period per the Act and AOA (the maximum time limit is 2 months to acquire qualification shares)?

Regards.

 

Dhruv Gaglani


 

Replies (2)

Stamp duty has to be paid on or before execution of an instrument.  Hence franking should have been done on or before the date of signing transfer form.  Hence penal provisions of the relevant Stamp Act will apply.

 

 

Thankyou for your reply. But what I want to know is what shall be the effective date of appointment?..Date of Transfer of shares or the date of franking?


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