Share transfer in Pvt. Co.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2009 Dear Sir/Madam,

Is it possible to transfer shares of Pvt. Co. to an outsider? i.e. a person(s) who are not connected in any ways with the Directors or the members of the company.
Moreover in general practice we take an application from the proposed transferor for transfer of share in the name of the transferee and then we pass an resolution approving the transfer.
And subsequent share transfer deed is executed on paying the appropriate stamp duty.

The above is with ref. to a Private Co.

Sir, My question is w.r.t. the above procedure folowed by us is :
-is it legally correct ?
- does it give effect to a valid transfer?
or if no, pls suggest me a valid and correct transfer procedure.

Thanks & regards

Aditya

Lalit

Lalit (Expert)
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18 December 2009 You can transfer shares of private limited company to any person whether he is related to director or not.

And procedure followed by you are correct

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2009 Thanks A LOT .
But can you throw some light on the Def. of Pvt. Co. , is it contradictory to it or not ??

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