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Transfer of shares- Private Company

Sudhir Garg (Service) (236 Points)

06 January 2011

Dear All

Considering rest of all formalities have been complied with, but company (Pvt) is neither refusing nor registering the trasnfer of shares, then upto how much time company may delay the share transfer registration?? Please answer with support of appropriate section/law case, if any. I observed that company must intimate the refusal within two months but nowhere it is mentioned about registration of transfer.

Regards / Sudhir

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3 Replies

Jaideep (Service) (1368 Points)
Replied 06 January 2011

Dear Sudhir,

As per Companies Act, 1956 company must refuse registration of transfer within 2 months from the registration of transfer deed. This provision itself indirectly convey that, company has to register transfer within 2 months. Some-time for strict compliance, language of the law is worded in negative.

Regards

Jaideep Pandya

Sudhir Garg (Service) (236 Points)
Replied 06 January 2011

You are correct Mr Jai.

Practically, in absence of share trasnfer deed of particular date (Where company and shareholder has concurrance), whether company may avail the benefit by delaying in regsitration of transfer.

Regards/Sudhir

Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 07 January 2011

As per Section 108 share transfer document has to be presented to prescribed Government Authority (ROC) who shall stamp or otherwise endorse thereon the date on which it is so presented. So the share transfer has to be effected within 2 months from the date of such presentation.