Share Transfer
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The ownership of an individual in the company is decided by the shareholding of that individual in the business. A person might transfer his/her shares in the company that means he/she is transferring his/her rights and responsibilities as well.
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Share Transfer
When a company’s structure is changing this can the expansion of a company or something else. This can lead to adding new shareholders or changing the percentage of the shareholding of the existing
shareholders. This includes the transferring of the shares. This procedure starts from the Form No. SH4.
Restriction Type
- Rights of pre-emption
In this case , if the shareholder wants to sell his/her shares. Then it will be first offered to the existing members of the company. And the price of the shares will be decided by the Directors or the Auditor of the Company. - Powers of Directors to reject
In this case, the Director can refuse the transfer of the shares under some circumstances according to the Articles of Association
Steps involved in Share transfer
- Share transfer
- Share transfer deed duly signed by the Transferor and Transferee.
- Stamp the share transfer deed according to the Indian Stamp Act
- Witness with his/her signature, name and address.
- Share certificate or allotment letter with the transfer deed
- Issuance of new share certificate in the name of the transferee.
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