Transfer of shares

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2012 Respected Sir

Should a company issue a new share certiifcate for transfer of shares. If not, then is it a wrong practice if a company has been doing the same?

Charu Srivastava

Charu Srivastava (Expert)
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18 July 2012 For transfer of share only the name of the transferee is endorsed at the back of the Share Certificate.

Suppose the Share Certificate contains 5000 shares and the transferor wish to transfer 2500, in that case split the shares and endorsed the name of the transferee..

Hope i could clear my point..

wait for other views as well

Adv. Rajesh Chhangani

Adv. Rajesh Chhangani (Expert)
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18 July 2012 Dear Anonymous,

It is not mandatory at all to issue new Share Certificate when they are of same value, but as per above answer when partial transfer one should split the shares and endorsed the name of the transferee. Because in case the transferee has an existing folio number he should quote the existing FN on transfer deed to enable registration of new shares in the same folio Number.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2012 Thank u Miss Charu and Rajesh sir. But what if the company has been issuing new certificates for normal cases of transfer and not splits. Is it a wrong act? Pl guide

Guest

Guest (Expert)

27 July 2012 It is a wrong practice to issue new certificate for normal cases of transfer.

Moreover when you are issuing new certificates again you have to pay stamp duty on the same.

Regards