1 Replies
Jatin Bajaj
(CS)
(2930 Points)
Replied 25 February 2017
As per ssectionn 56 , Read with share capital and debentures rule , there is no such restriction that share cannot be transfered in cash.
procedure
First of all declaration shall be made by transferor that the shares which would be transfered to transfree solely belongs to the transferor specifying share certificate no , distinctive no and folio no
Notice of intention shall be made by transferor specifying his intention to transfer the shares
pass the board resolution in board meeting for transfer of shares
execute the share transfer deed in form sh 4 duly signed by transferor and transfree specyfing his name , address , occupation
pay the stamp duty @ .25 paise for every 100 rs or part thereof
pass the board resolution that shares are transfred from transferor to transfree and authorize the person to sign the share certificate on behalf of company
in case of partly paid up shares application shall be made by transferor to transfree in form SH 5 & transfree gives non objection within 2 weeks from the date of receipt of notice
issue the share certificate in form SH 1 within 30 dayss from the date of transfer of shares.
share certificate shall be endrosed by transferor to transfree on back of share certificate and shall be duly signed by 2 directors and authorized signatory of the Company
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