LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

transfer of shares

Gaurav Kaushik (Assistant C.S.) (66 Points)

18 October 2017

please tell the provisions regarding the transfer of shares in a Pvt. company.

Reply
Follow
Share

7 Replies

CS Smreti (cs) (641 Points)
Replied 18 October 2017

Statutory provisions related to transfer of share one should refer the following sources:

• Section 56 of Companies Act, 2013• Rule 11 of Companies (Share Capital & Debentures) Rules 2014• Provisions given in model articles of association given in Table ‘F’ of Schedule-I

Generally a Private Company is guided by its Article of Association. As per Section 2(68) of Companies Act, 2013 Private Company restricts the transfer of shares and prohibit invitation to public to subscribe to any securities of the Company.

Refer :https://www.commerceduniya.com/2015/06/12/procedure-for-transfer-of-shares-under-companies-act-2013/

1 Like

Gaurav Kaushik (Assistant C.S.) (66 Points)
Replied 18 October 2017

if a member of a private company wants to transfer it's shares then it can be transferred to anyone or it shall be transferred to existing shareholders.

CS Smreti (cs) (641 Points)
Replied 18 October 2017

If article prescribes nothing then compny on receipt of the notice of interest to transfer shall intimate existing members and give them option to apply, if no members shows any interest then it can be transferred to outsiders.

1 Like

Gaurav Kaushik (Assistant C.S.) (66 Points)
Replied 18 October 2017

Thanks. in what proportion shares will be offered to the existing shareholders. it will be as per existing shareholdering pattern or equally or it depends on the transferer or anything else.