One shareholder proposes to transfer his shares to third person.
Here, I have a basic doubt :
Query
After the transfer of shares, whether the Ledger Folio used for the original shareholder (transferee) shall be used for the new shareholder (transferor) or New Ledger Folio shall be opened for the Transferor.
Ans : ................
Whether such query has got any supporting from the act.
Ans : ................
I shall wait for replies from the friends / experts.
The person who is transferring his shares is referred to as 'Transferor' and the person to whom the shares are to be transferred is referred to as 'Transferee'.
In case, the transferee is also an existing shareholder of the Company, no need to open a seperate folio and the transfer of shares will be given effect to in his folio.
In case, this is not the case, u need to open a Seperate Folio.
After the Transfer of shares, has been given effect to, the folio of the transferor shareholder shall be closed in the books.
ABC Pvt Ltd has two shareholders assuming the following:
X --- Ledger Folio No.1 --- Distinctive No 1 to 10
Y --- Ledger Folio No.2 --- Distinctive No 11 to 20
if X or Y Transfers Shares to Z , then you have to Create a new ledger folio number i.e No.3, But shall continue with Same Distinct Number i.e Distinctive No 1 to 10 assuming that no prior share transfer or split is made !!
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