Sumit (Student) (45 Points)
21 September 2010A is share holder of xyz Pvt Ltd. company(unlisted). A sold his shares to c without informing company and without executing share transfer deed.Now C want to sell these shares.What options are available to him.please throw ur valuable suggestions.Can c sell shares to D an existing shareholder and make the deed executed between A and D ?
vivek
(CS)
(751 Points)
Replied 21 September 2010
Upto my understanding:-
1. C is not a Sharholder, his name never entered in register of member. Not being a member, he don't have any right to transfer.
2. Definetely, second option can be excercised, A can be transferor of shares because in the records as on date A is the valid shareholder (irrespective of the possession of share certificate).
3. The issue might occur on consideration, how it will be transferred to Mr. C (no. of ways can be) but , company don't need to panic about this.
Others views solicited.
Regards,
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
