Transfer of Shares

Time limit for issue of certificate on transfer (Section-113)

 Within a period of two months in case of unlisted companies

Every company, unless prohibited by any provision of law or of any order of any Court, CLB or other authority, shall, within two months after the application for the registration of the transfer of any such shares, debentures or debenture stock, deliver, in accordance with the procedure laid down in section 53, the certificates of all shares transferred.

Appeal against refusal to register transmission of shares

The transferee, or the person who gave intimation of the transmission by operation of law, as the case may be, may appeal to the Company Law Board/Tribunal against any refusal of the company to register the transfer or transmission or against any failure on its part as stated under section 111(1) of Companies Act, either to register the transfer or transmission or to send notice of its refusal to register. [Section 111(2)]

Time-limit for filing an appeal

An appeal under section 111(2) of Companies Act, 1956 shall be made within two months of the receipt of the notice of such refusal or where no notice has been sent by the company within four months from the date on which intimation of transmission was delivered to the company under section 111(3) of Companies Act, 1956.

Please give a reading to section 111(1)(2)(3)(4) of Companies Act, 1956. Also find attached herewith a useful file. Revert if there is any doubt.

Regards