If in a company Mr. A purchase shares from Mr. B For Rs. 10,000 but Mr. B Did not deposit cheque upto 1 year and cheque become invalid. In such a case whther transfer of shares is considered or not
3 Replies
Rama Krishna
(Consultant (IB))
(36 Points)
Replied 15 December 2017
purchase and sale of shares is a contract whereby the buyer is obligated to pay the consideration and seller is obligated to deliver the goods. when both the parties have performed their part, the contract is deemed to concluded.
coming to your query, where the instrument of transfer duly executed (including payment of stamp duty) alongwith original share certificate was lodged with the company by the transferee and the company has registered the transfer, it is deemed that all the requirements pertaining to such transfer have been complied with. Hence the transfer of shares hold good and valid.
coming to your query, where the instrument of transfer duly executed (including payment of stamp duty) alongwith original share certificate was lodged with the company by the transferee and the company has registered the transfer, it is deemed that all the requirements pertaining to such transfer have been complied with. Hence the transfer of shares hold good and valid.
Isha Garg
(JOB)
(3 Points)
Replied 16 December 2017
Thanx RAma Krishna For your answer.
Kindly also clarify that what about the consideration on transfer. Whther Mr. A has to issue the new cheque to Mr. B
Rama Krishna
(Consultant (IB))
(36 Points)
Replied 16 December 2017
yes...he has to issue chq again....encashment of chq is the responsibility of the transferor.
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