Delay in share transfer execution

Co Act 2013 506 views 3 replies

Dear Sir/ Mam, We are in the process of transferring the shares of a Pvt Ltd Company. It is a internal transfer between the directors of the said company. The transferee has given the consideration in the form of cash in the month of April 2016, but due to some reasons we were unable to execute the share transfer deed within 6 months from the date of receipt of money. And now ie., in March 2017 we want to execute the Share transfer Deed ( Form SH-4) So please clarify whether we have to give Indemnity Bond for the Delay in Execution of Share Transfer, also let me know who should give the Indemnity bond and to Whom? (I.e. First party and Second party Name ) Value of the indemnity bond, If possible please share the matter of the indemnity bond also ........ 

 

Replies (3)

Under the new 2013 Act there is no time limit for submission of SH-4 to the company.  Payment  of  consideration is  a matter between buyer &  seller.  Company  is not concerned with  that.  No indemnity is required.  Just file SH-4 with the  company and get the shares transferred.

 

I agree with Agarwal sir.

Thank u So much sir


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