Transfer Of Shares

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    Transfer of Shares

    Securities of a company are freely transferable though there may be certain restrictions imposed on the transfer of shares of the private company as provided in their articles securities of a company are freely transferable though there may be certain restrictions imposed on the transfer of shares of the private company as provided in their articles.
    Section 56 of the 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 of transfer of shares (share transfer form) is filed as prescribed in the Form No. SH 4.
    The form SH-4 for transfer of share needs to be duly stamped, with adequate value, dated and executed by or on behalf of the transferor and the transferee.
    Form SH-4 is needed to be sent to the company by the transferor or the transferee of the shares within sixty days from the date of execution of share transfer agreement along with the share transfer certificate or certificate relating to securities.
    In case there is no such share transfer certificate, the application for transfer of shares must be sent along with the letter of allotment of securities.

    Documents required for Transfer of Shares

    1. Notice by transferor to Company
    2. Board Resolution for considering the Notice by transferor to Company
    3. Letter of Offer made by company to existing shareholder
    4. Dissent letter from existing shareholders
    5. Share Transfer Deed in SH-4 form along with stamp duty paid
    6. Share certificates
    7. Board resolution for registering transfer of shares

    Taxcellent will help you in preparing Transfer Deed and registering transfer of shares as per the prescribed procedure.

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