CA rohit swami (CHARTERED ACCOUNTANT) (262 Points)
16 March 2013my question about is "tell me brief role for share transfer deed in transfer" and wants to know about procedure of transfer of shares in pvt.comany.actual practically applied only
Shankar BA(Hons)
(CS)
(278 Points)
Replied 16 March 2013
Buddy,
As per Section 108 (1A) of Indian Companies Act, 1956 a Company can transfer the shares using the Share Transfer Form No.7B.
Share Transfer Deed is used as it contains fully details of:
1) Company
2) Shares ( Equity or Debenture and its distinction & certificate number )
3) Transferor ( and his details )
4) Transferee ( and his details )
5) Consideration value
6) Stamp Value
7) etc....,
This is an evidence and an instrument to express the willingness of the transfer.
Procedure:
Share Transfer Deed has to be prepared by the shareholder who wish to transfer his shares and send it along with the original share certificate to the company. A Board meeting has to be conducted and the transfer should be authorized.
CAclubindia
