Share transfer
Share transfer is the process of transferring one’s shares, its related rights and liabilities to another person. A transfer of share can only be transferred for only existing shares and from existing shareholders. Though the transferee can be existing shareholder or not of company.
Service Overview
Share transfer is the process of transferring one’s shares, its related rights and liabilities to another person. A transfer of share can only be transferred for only existing shares and from existing shareholders. Though the transferee can be existing shareholder or not of company.
Cost of Digital Signature, Government Fees and Stamp Duty, if any, is payable by the client in addition to the Professional Fee being charged by indian MSME Helpline.
Brief Process
- Execution of Share transfer deed in SH-4 (Format attached) duly executed, signed and stamped by transferor and transferee as per Law.
- Either transferee or transferor will send share transfer deed along with original certificates or letter of allotment of securities
- The Company within a period of one month from the date of receipt by the company of transfer shall register the transfer and issue the new share certificate to transferee.
- The Company will update its register of members accordingly.
FAQ
In the event of incomplete documents being furnished for transfer of shares, the company can refuse to transfer the shares.
Such intimation for refusal along with reason has to be intimated to transferor and transferee within thirty (30) days from the receipt of share transfer deed.
The following can transfer the shares:
-
Subscribers to the memorandum.
-
Legal Representative, in case of a deceased.
-
Transferor.
-
Transferee.
-
Company (whether listed/ unlisted).
As per provisions of Companies Act, 2013, following penalties can be attracted:
-
For company: Minimum penalty of Rs.25,000 and a maximum of Rs.5,00,000.
- For an officer in default: The minimum penalty of Rs.10,000 and the maximum can be Rs.1,00,000.
The company must accept the transfer unless there is some provision in its articles which restricts transfers or gives the board discretion to decline them.
Transfer without consideration is Void. However, transfer of shares on the basis of family arrangement without complying with provision of Companies Act, 2013, is valid.
Documents Required
- Form SH-4 duly filled and signed.
- Self-attested copy of PAN card of Transferor(s) (i.e. sellers) and Transferee(s) (i.e. buyers)
- Original share certificate(s) of transferor
- Pay appropriate stamp duty @0.25% on market value by way of franking or affix share transfer stamps.
Related Courses
.png)
.png)
