I want to transfer my shares in a pvt co to my brother. There's no turnover in the Pvt Company since 2 years.
Can it be transferred at Face Value of Shares? If not, at what value?
kindly advise.
This is a gist only, transfer the shares as it was at initial issue I.e., face value, premium or at discount. As per companies act 2013, for PVt. company
Procedure For Transfer Of Shares Of Private Ltd. Companies:
Such restriction on transfer of shares, if one adds any is to protect the interest of shareholders and other security holders. Section 56 of Companies Act 2013 provides that the transfer of shares of the company and other securities will be registered by a company only when a proper instrument for transfer of shares (share transfer form) is filed as prescribed in Form No. SH 4. You need to duly stamp the SH 4 format for transfer of share with adequate value and date. Also, one can execute it by or on behalf of the transferor and the transferee. One needs to send Form SH 4 to the company by the transferor or the transferee of the shares within 60 days from the date of execution, of the share transfer agreement. Along with the share transfer certificate or certificate relating to securities. In case there is no such share transfer certificate, then one must send the application for transfer of shares along with the letter of allotment of securities. Also, one must obtain a ‘No Objection Letter’ from the buyer within two weeks from the date of receipt of a notice.
CAclubindia
