05 August 2010
A holds 100 shares in one share certificate but wants to transfer 50 shares in the name of B & C each. What is the procedure of splitting the share certificate into two for the said matter?
Please quote the relevant section and Rules, if possible.
05 August 2010
1) Apply to the company to issue you two seperate share certificates in lieu of your one share certificate
2) Upon receipt of the two certificates, the shares may be transferred to the two persons.
3) However, if B and C are related persons and if they agree in writing, then the above steps can be eliminated.
4) Transfer 50 shares each to B and C without specifying the certificate number. Only state the distinctive numbers. Simultaneously, a letter should be attached to the transfer deed addressed to the company, requesting split of the share certificate and to record the transfer of shares in favour of B and C for their respective shares.
06 August 2010
ok.. This needs to be done on the part of the Shareholder. But what are the formalities to be performed by the company?
On receipt of application alongwith the original share certificate, is the company required to hold a Board Meeting? or any of the Directors can sanction the split without a meeting?
06 August 2010
Company after receipt of doc. from shareholder has to held Board meeting, than cancel the share certificate submitted and later issue two new share Certificate of 50 shares each.
Enter the details of split in register of renewed and duplicate share certificate and also of Register of Memebrs.
Than Issue certificate duly signed by 2 director and Authorised signatory under the Common seal & 1 rupee stamp.
The Cancelled certificate need to be preserved by the Company for period of 3 years & later Company can distroy the same
CAclubindia
