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Share certificate

ArchAngel (Corporate Affairs Enthusiast) (118 Points)

17 October 2012

Dear Experts,

A person having 25% of share a private limited company would like to transfer 20% of his shares to another member. The transferrer submits the duly executed 7B form along with the old share certificate? Now the company can issue a new certificate of 20% shares in the name of the transferee and another certificate(5%) shares in the name of the transferrer?

Note that we don't split the 25% share certificate first, instead just issued the 2 new share certificate in which one of them is in the transferee's name.

I just want to know if there is any legal complications if Company issues the new 2 certificates without recording the split.

Thanks,

ArchAngel

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3 Replies

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 17 October 2012

In the above case first the Certificates are to be Split and then to be transferred, both process may be done in one go or separate request may be send to the Company.

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CS. DISHA SHAH (Properitor of D. M. SHAH & CO. COMPANY SECRETARY) (394 Points)
Replied 17 October 2012

hello

you have to do split,,, .

>If you are issuing two new certificates, hw it will b show that thats of transfer of shares,, n

>second thing you have to cancel the share certificate of the Transferor also. so. if you are issuing two new, then you have to first of all cancel the share certificates of Transferor, n thats what near to split so better you do split of shares first. . and

>as u have done with the Form 7B, n if nw you issue new share certificates there will be mismatch of share certificate nos. also,,,, .

>so pls. take the note of all above said problems first of all n you then decide n as per my advise you pls. do split of shares & transfer.