shares

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what is the procedure to transfer the shares in demat account in case of prop. firm which is alloted by private company . and please tell me if in the share certificate the firm name is written whether the prop. of the firm can transfer these shares in his demat account. and how these share are sold. ??? thanks in advancewhat is the procedure to transfer the shares in demat account in case of prop. firm which is alloted by private company . and please tell me if in the share certificate the firm name is written whether the prop. of the firm can transfer these shares in his demat account. and how these share are sold. ??? thanks in advance

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Ajay Mishra (Company Secretary) (74337 Points)
Replied 23 January 2010

Dear Kundan

Section 41(2) provides that only a person can be a member of the company who has agreed in writing to become a member and whose name is entered in the Register of Members.

As per Department's Circular No. 4/72, dated 9-2-1972, it has been clarified that "a firm" not being person, can not be registered as a member of a company.

So please check the earlier allotment to the propritership from your end and then transfer of shares to any one otherwise allotment and transfer will be nulll and void.

Regards

Ajay