In a Pvt Ltd company if shares are tranferred from one member to another , and there is no consideration paid by transferre. Will it be a Legal Transfer. If No , Can we write the amount of consideration in the share transfer deed for the sake of formality, if in actual no consideration was involved?
3 Replies
Shankar BA(Hons)
(CS)
(278 Points)
Replied 31 May 2013
Dear Rachit,
Generally speaking, when a Share Transfer takes place, first its face value amount is the consideration. After Board discussions and share valuation, the consideration is arrived.
In your query when there is no consideration involved, then you have to enter the share value multiplied by its face value and it is a legal transfer.
But see to that the exact value which you have entered the consideration column is the same with the money transaction. If not, then it is illegal.
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 31 May 2013
Agree with the learned member above.
If the transfer in between close relatives, without consideration, then you can go for transfer of share through gift. In this method execution of gift deed would be required.
Law Aspire
(CS)
(755 Points)
Replied 31 May 2013
Thank U Members 4 your Prompt reply
What if the column in share transfer deed regarding consideration is left blank and filed by the shareholder.
what will happen if 1000 share of face value Rs.10 are transferred for a total consideration of Rs.100.
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