We have previously issued 50,000 shares to one of the directors of a private company. Now the director wants to transfer 15,000 shares to one person and 16,500 shares to another person. Please explain the procedure to transfer the share and share certificates and issue of fresh certificates to all.
07 July 2012
Dear Friend, there is no need to issue seperate share certificate to all.In case of Director you have to endorse on back of his certificate the name of transferee. Now in the case of two transfer you have to issue two certificates endorsing on it that it is issue in lieu of certificate no. of director.
First take duly filled transfer for from the director and an application to transfer the shares to the respective transferee.
Find out the provisions of AOA of your company.
Take all details of transferee.
Call a board meeting according provision of section 286 of the companies act, 1956 and pass resolution for approving transfer of shares in the meeting.
CAclubindia
