Shareholding transfer in private co.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2014 Hello everyone,
here is my query
in a private company, there is 5 shareholders and 2 out of them holding 56% shares. now both wants to transferring its whole shareholding to other members.
So what is the procedure,legal requirement and documents to be filled?

and also what if there is only 2 shareholders in company and they wants to transfer their shareholding?
Thanks in advance

Aalok Chhaperwal

Aalok Chhaperwal (Expert)
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04 January 2014 The transferees have to execute the transfer deeds seperately (Form 7B)(remember its validity for private company is for two months) alongwith share certificates issued and share transfer stamps and require to lodge them with the Company.
The Company, after receiving approves the transfer if signatures are matched with record and sent back to the address entered at the back side of transfer deed.

Thereafter Company updates the members register accordingly.

If only two members are their and they wants to transfer the entire shareholding, then the same procedure is required but minimum number of members in pvt. ltd. company in any case needs to have two.