Astha ( ) (72 Points)
25 October 2009What are the provisions governing Share transfer Committee ?? Is it mandatory for a listed entity to have it constituted?? OR it is optional and such entity can also opt for outside external agency services in this regard instead of having its own share transfer system. Pl clarify on this.
Regards
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 26 October 2009
Hi,
As per clause 49 composition of a committee titled “share transfer committee” is not mandatory. However composition of ‘Shareholders/Investors Grievance Committee’ is mandatory to specifically look into the redressal of shareholder and investors complaints like transfer of shares, non-receipt of balance sheet, non-receipt of declared dividends etc.
You can 100% opt for outside external agency service (RTA) having its own share transfer system but adopt the certificates of RTA in your ‘Shareholders/Investors Grievance Committee meeting’. This would be considered as sufficient compliance.
Find below the relevant extract from Listing Agreement:
“A board committee under the chairmanship of a non-executive director shall be formed to specifically look into the redressal of shareholder and investors complaints like transfer of shares, non-receipt of balance sheet, non-receipt of declared dividends etc. This Committee shall be designated as ‘Shareholders/Investors Grievance Committee’.”
Regards
CAclubindia
