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Transfer of shares

Mamta Batra (CS) (376 Points)

04 July 2009

can anybody tell me the step-wise whole procedure for transfer of shares in case of private company from one member to another?

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2 Replies

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 04 July 2009

Hi,

First check your AOA provisions regarding transfer of share.

Procedure

1. Transferor --- give notice --- to the Company --- for his intention to transfer.

2. Company in turn --- notify to other member --- regarding availability of share and price at which such share would be available.

3. Such price --- generally determined by auditor/directors of the company.

4. Company --- also communicate to member --- time limit --- for option to purchase shares.

5. if nobody comed forward --- then share may be transfered to outsider --- in such case company have to accept the transfer.

Note: transfer to outsider without following AOA procedure will not be operative against the company and transfer to an outsider was held not to be effective.

Best Regards

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Mamta Batra (CS) (376 Points)
Replied 04 July 2009

in my case one member of the company is interested to purchase the shares of another member. I want to know the procedure to get them registered? Stamping on Trasfer Deed etc.