Share certificate

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ravi

senior accountant

507 Points Joined December 2010

Pvt. Co-Should share certificates to be made and kept as a record in a pvt company? if yes what is the proforma of share certificate: and pls suggest me the uses of share certificate( making and keeping as share certificte - surely it denotes the ownership but is there any law requirement to have as a share certificate?). whether law requires to have a share certificate in the hands of share holder pls suggest.

Pls also suggest me the procedure for share transfer in a private company. my friend holds some shares and he wanted to transfer his holding to his friend pls suggest me the step by step procedure for transfer (particularly in pvt co point of view)

Replies (6)

Charu Srivastava

Company Secretary

4210 Points Joined July 2010

follow thw link below, yow will get the features of Shares Certificate

/forum/share-certificate-176622.asp

The Share Certificate is in two parts....The counterfoil and share certifiacte

The counterfoil is kept with the Company for records whereas the Certificate is given to the Shareholder.

As far as the Transfer of share is Concerned, Share Transfer Form in form 7B is executed duly Stanped as per Stamp Act (.50 paisa of the value of Shares transferred) signed by the transferor and transferee and witnesses specifying the name, Adresses and Occupation alongwith Share Cetificate to the Company for the proposed Transfer. The Board will approve the same and thereafter will make necessary entries in the Register of Transfer. This is how the transfer is effected.

Hope the above explanation will help you..

CS Ankur Srivastava

Company Secretary & Compliance Officer

17858 Points Joined November 2008

*Rate of Stamp duty *

Stamp duty for transfer of shares is 25 paise for every Rs. 100 or part thereof of the value of shares as per Notification No. SO 130(E), dated 28-01-2004 issued by the Ministry of Finance, Department of Revenue, New Delhi.