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Transfer of shares in a private company

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Vinod

CA in Practice

193 Points Posted on 18 September 2013

Dear Friends,
One private limited company wants to change all its 5 share holders (all of them are directors also). In this case, if they transfer the shares through a transfer deed, how the data in the ROC records get changed? (because, the transfer deed is submited to the company and not to the ROC).

1. Is there any form to be submited by the company to ROC regarding transfer of the shares ?

2. Is there any restriction from transfer of shares in a private company ?

3. I found that the shares holder of a pvt. company can transfer shares to his represetative only- what is the meaning of representative ? Please help me to clear the above doubts.

Thanks in advance..
vinodaca74 @ gmail.com

Replies (1)

Khushboo Maheshwari

Company Secretary

293 Points Posted on 18 September 2013

Originally posted by : Vinod
	Dear Friends, One private limited company wants to change all its 5 share holders (all of them are directors also). In this case, if they transfer the shares through a transfer deed, how the data in the ROC records get changed? (because, the transfer deed is submited to the company and not to the ROC). 1. Is there any form to be submited by the company to ROC regarding transfer of the shares ? 2. Is there any restriction from transfer of shares in a private company ? 3. I found that the shares holder of a pvt. company can transfer shares to his represetative only- what is the meaning of representative ? Please help me to clear the above doubts. Thanks in advance.. vinodaca74 @ gmail.com

Sir The details of transfer of shares, shareholding etc are submitted in the annual return filed by each company through Form 20B. As per Sec 3 of Act of 1956, the private company has restrictions on the right of transfer of its shares.