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STATUTORY PROVISION OF TRANSFER OF SHARES

Shareholders are the true owners of the Company and they are free to transfer their shares at any point of time. Private Limited Company has restriction clause in its Articles of Association and cannot invite public to subscribe its shares, on the other hand transferring of shares in Public Companies and Listed Public Companies is comparatively easy and volatile.

Section 56 of Companies Act, 2013 read with Rule 11 of companies (Share Capital & Debenture) Rule 2014 and subject to the compliance of provision given in model articles of association given in table “F” of sehedule-1, an instrument of transfer of securities (generally known as Transfer Deed) shall be in Form No. SH.4 and every instrument of transfer with the date of its execution specified thereon along with the original share certificate and if the share certificate is lost or not found then the copy of letter of allotment shall be delivered to the company within sixty days from the date of such execution as per Rule 11 (1).

A company shall not registered a transfer of partly paid shares, unless the company has given a notice in From No.5 to the transferee and the transferee has given no objection to the transfer within two week from the date of receipt of notice as per Rule11(3).

At Unilex Consultants we provide you a hassle free compliance process which would be dealt by our professionals within a short time frame and is subjective to governmental processing time. Our team takes care of the documentation and aids in provide you the realistic estimation of cost.

DOCUMENTS FOR SHARE TRANSFER


AOA and MOA

Share Transfer Deed

Share Certificates

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OR

PROCEDURE OF SHARE TRANSFER

1

Obtain the Share transfer deed in Form SH-4.

2

Execute the share transfer deed duly signed by the transferor and transferee.

3

Stamp the share transfer deed (0.25% of the total Consideration).

4

Get the Transfer deed signed by Witness with his/her signature, name, and address details.

Time period for depositing the share transfer deed

The transferor or the transferee within a period of sixty days from the date of execution, existence, along within a period of sixty days from the date of execution along with the certificate relating to the securities, or if no such certificate is in existence, along with the letter of allotment of securities.


Time Limit to issue new share certificates on share transfer

  • Within a period of two month from the date of incorporation, in the case of subscribers to the memorandum;
  • Within a period of two months from the date of allotment, in case of shares;
  • Within a period of one month in case of transfer or transmission of securities;
  • Within a period of six month from the date of allotment in case of any allotment of debenture.

FAQ’s About Share Transfer of Company

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