Transfer of shares in cash

As per ssectionn 56 , Read with share capital and debentures rule , there is no such restriction that share cannot be transfered in cash.

procedure

First of all declaration shall be made by transferor that the shares which would be transfered to transfree solely belongs to the transferor specifying share certificate no , distinctive no and folio no

Notice of intention shall be made by transferor  specifying his intention to transfer the shares

pass the board resolution in board meeting for transfer of shares

execute the share transfer deed in form sh 4 duly signed by transferor and transfree specyfing his name , address , occupation

pay the stamp duty @ .25 paise for every 100 rs or part thereof

pass the board resolution that shares are transfred from transferor to transfree and authorize the person to sign the share certificate on behalf of company

in case of partly paid up shares application shall be made by transferor to transfree in form SH 5 & transfree gives non objection within 2 weeks from the date of receipt of notice

issue the share certificate in form  SH 1 within 30 dayss from the date of transfer of shares.

share certificate shall be endrosed by transferor to transfree on back of share certificate and shall be duly signed by 2 directors and authorized signatory of the Company