Dear all,
Can a Pvt company transfer its shares to a trust, created by it, for the benefit of employees? If yes, what is the procedure to be adopted? what may be the future complications w.r.t tranfer of shares?
Plz
Thanks in advance.
CA PRAMOD CHADA (QUALIFIED CA. CS FINALIST) (130 Points)
15 September 2021Dear all,
Can a Pvt company transfer its shares to a trust, created by it, for the benefit of employees? If yes, what is the procedure to be adopted? what may be the future complications w.r.t tranfer of shares?
Plz
Thanks in advance.
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 15 September 2021
sachin
(CS)
(29 Points)
Replied 15 September 2021
A trust which has not been registered cannot be treated as a person, hence shares cannot transfer to an unregistered trust. However, it could be registered in the names of one or more trustees. However, shares can be registered in the name of a trust or co-operative society, if it is registered. Hence, a pvt ltd. company can transfer its shares to a registered trust.
CS Divesh Goyal
(Practicing Compnay Secretary)
(50845 Points)
Replied 15 September 2021
This is not correct way.
Chirag
(Professional)
(1979 Points)
Replied 27 September 2021
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