Dear Friends,
A from India transfers his shares in Private Limited Company to ABC which is a Foreign Company. They have executed a transfer deed on 1.1.2009. They have filed form FC-TRS on 10.1.2009. What shall be the Board's Approval date to this share transfer? Can Board approve this before filing of FC-TRS? Or the Board must verify whether this Form has been filed or not? Regards,
J. Manivannan
(Advocate & IP)
(242 Points)
Replied 30 September 2009
Board approval is mandatory for transfer of shares( such transfer would be complete after The board approved the same) before filing of FC-TRS with RBI. You may put approval date on or before 10th Jan 2009.
The board should verify whether the form of FC-TRS has been filed, in case of Transfer of shares from Resident to Foreign person or company.
CAclubindia
