Share transfer

[Deepali Sharma]

Dear all,

Please send the checklist for share transfer on urgent basis.

Thanks
Regards
ACS Deepali

[Sonesh Jain]

Dear Deepali ji

Basic Procedure for Transfer of Share in a Private Company  

Generally articles contain the detailed provisions as regards the procedure for transfer of shares. Usually following steps shall be followed by a private company to give effect to the transfer of shares:—   

Transferor should give a notice in writing for his intention to transfer his share to the company. 

The company in turn should notify to other members as regards the availability of shares and the price at which such share would be available to them. 

Such price is generally determined by the directors or the auditors of the company. 

The company should also intimate to the members, the time limit within which they should communicate their option to purchase shares on transfer. 

If none of the members comes forward to purchase shares then the shares can be transferred to an outsider and the company will have no option, other than to accept the transfer. 

Get the Share transfer deed in form SH-4 duly executed both by the transferor and the transferee. 

The transfer deed should bear stamps according to the Indian Stamp Act and Stamp Duty Notification in force in the State concerned. The present rate of transfer of shares is 25 Paise for every one hundred rupees of the value of shares or part thereof. 

Do not forget to cancel the stamps affixed at the time or before signing of the transfer deed. 

The signatures of the transferor and the transferee in the share transfer deed must be witnessed by a person giving his signature, name and address.

Attach the relevant share certificate or allotment letter with the share transfer deed and deliver the same to the company. 

The share transfer deed should be deposited with the company within sixty (60) days from the date of such execution by or on behalf of the transferor and by or on behalf of the transferee. 

After receipt of share transfer deed, board shall consider the same. 

If the documentation for transfer of share is in order, board shall register the transfer by passing a resolution.

--
--
************************************************
Mail your comments, feedback and suggestions on CSMysore to Moderator: datta...@gmail.com and Manager: vivekhe...@gmail.com
---
You received this message because you are subscribed to the Google Groups "CSMysore" group.
To unsubscribe from this group and stop receiving emails from it, send an email to csmysore+u...@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.

--

With Regards,

CS Sonesh Jain

Jain Sonesh & Associates

Company Secretaries

3,Trailokya Nath  Banerjee Lane,

Howrah - 711 101

Contact No. +918013929199

[shweta9p...@gmail.com]

Very well explained.

Just to be more clear, so now no need to take transfer form from roc just to take printout of form SH-4 which is to be franked and signed 

[Deepak Singhal]

Dear Sonesh Ji

Please explain that whether the stamp duty is to be paid on the basis of the value of the shares proposed to be transferred or the consideration involved.

[Nagendra B]

Hi

Stamp duty paid on the consideration involved

[Deepali Sharma]

Pls reply the query that this process means making deed in form SH 4 and stamp duty to be paid, is also to be done in case shares are in demat form, pls reply on urgent basis as I am doing this work for first time and moreover its going to be my first work after joining new co, pls help

[Sonesh Jain]

Dear deepali Ji

Hope this will help You

Basic Procedure for Transfer of Share in a Public Company:   

Section 58(2) provides that the shares or debentures and any interest therein of a public company shall be freely transferable. Usually following steps shall be followed by a private company to give effect to the transfer of shares:—   

Get the Share transfer deed in form SH-4 duly executed both by the transferor and the transferee. 

The transfer deed should bear stamps according to the Indian Stamp Act and Stamp Duty Notification in force in the State concerned. The present rate of transfer of shares is 25 Paise for every one hundred rupees of the value of shares or part thereof. Do not forget to cancel the stamps affixed at the time or before signing of the transfer deed. 

The signatures of the transferor and the transferee in the share transfer deed must be witnessed by a person giving his signature, name and address. 

Attach the relevant share certificate or allotment letter with the share transfer deed and deliver the same to the company. The share transfer deed should be deposited with the company within sixty (60) days from the date of such execution by or on behalf of the transferor and by or on behalf of the transferee. 

this is for reference............Other view are welcome.

After receipt of share transfer deed, board shall consider the same. If the documentation for transfer of share is in order, board shall register the transfer by passing a resolution.

[Deepali Sharma]

Thanks sonesh ji, I want to know as public companies are allowed to transfer their shares, they are not reuired to follow these steps and also when shares are in demat form, this procedure of stamping should be followed or not, pls confirm,

[KHUSBU KHEMKA]

Is it necessary to make payment to the transferee through cheque even if the amount is Rs 20000. Can it be done If we make payment in cash. 

Regards

ACS KHUSBU KHEMKA

[Jayashree Chandrasekaran]

If the shares are in demat form the procedure mentioned will not be applicable

Jayashree

C.JAYASHREE
PROPRIETOR
S.GANESH&ASSOCIATES
CHENNAI
98840 17120

[KHUSBU KHEMKA]

No, it is not in demat.

Regards

ACS KHUSBU KHEMKA

[Deepali Sharma]

Thanks jayshree fr clarification, there one more query, the co is registered with NSDL and CDSL both and there is one share transfer agent also, pls guide how to initiate the procedure for transferring the shares ? Should I have to file any application with any one of them?

[KHUSBU KHEMKA]

Also, at which price shares should be transferred?

As for example, there is a company whose share capital is Rs 50000, Reserves (-140000), There is a loss of Rs 40000 as per latest audited accounts. No of shares at present is 50000 shares  of Rs 10 each. At what price should it be transferred?

Can anyone tell me the calculation process?

[Jayashree Chandrasekaran]

Dear Deepali,

In case of share transfers involving dematerialised shares,the transferor must contact their concerned Depository Participant and must sign their specific form....NSDL/CDSL does not come into the picture

@Khusbu:Consideration for transfer is the decision of the seller/buyer...maybe you can calculate the EPS and work out the price

Jayashree

[Deepali Sharma]

Thanks jayshree, you have been really a great help.