Dear All,
I have one Query-
Can unlisted company transfer shares between one shareholder to another at a consideration less than Book value. If both shareholders are relatives.
As per recent amendment, relatives are exempt and plz tell me from which date that amendment will come into effect.
Regards
Sarabjeet Kaur
If both are relatives as defined u/s 56(2) then there is no problem in transferring below book value. The new rule was applicable w. e. .f 01.10.2009 for individuals & HUFs and 01.06.2010 for firms and companies.
Detailed analysis has been made here also.
/experts/tax-on-repurchase-of-share-after-31-05-2010-452560.asp
thank u so much...
A Listed Public Company has Public Shareholding of 2% only instead of the required 25% and the remaining shares are held by promoters. Now the Company wants to increase its Public Shareholding to the required threshold limit of 25%. Kindly suggest ways how to give effect to the same. M confused about how to transfer the shares to the Non promoters. And also guide me on how does the book value of shares of a Company may effect the Transfer of shares and the consideration amount involved in such shares.
Please suggest some way outs.
Thanks & regards.
CAclubindia
