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Share Transfer
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Share Transfer
Transfer of Shares of a Company
Shares of a company are movable property and thus can be transferred like any other property. A public company can freely transfer its shares, but there are some restrictions on the transfer of shares by a private company. The limits are imposed to protect the rights of investors and shareholders.
Preparation to Initiate Share Transfer
- Check for restrictions in the AOA
- First, offer shares to existing members
- Enter into a Share Transfer Agreement
- If they The transfer of Shares are restrict
- The share transfer form is SH-4 (Sec 56)
Documents Required for Transfer of Shares
- Original Share Certificate of share to be transferred
- Certificate of Stamp duty payment (Franking) on issue of share certificate
- Valuation and the share transfer agreement
- ID and address proof of the transferor and transferee
- Proof of payment of consideration of transfer if any
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