Procedure/Steps to Be Followed By The Company With Regard To Transfer of Shares
Registration of Transfer
The company shall register transfer of shares, only when:
- Proper Instrument of transfer, has been duly stamped
- It has been properly executed b transferor, and transferee
- Name, address and occupation of transferee has been delivered to the company.
- Share certificate or letter of allotment has been delivered along with instrument of transfer.
- Central Government has prescribed the form for transfer, which should be used in the case of all transfers of shares of a company, including a private company. The form contains the entire particular required.
When, the company received all the requisite documents it generally gives an acknowledgement for the same.
- If the instrument of transfer is received from a person other than the transferor and the shares are partly paid -up, the company has to send a notice to the transferee, and it may also send a notice to the transferor.
Before effecting any transfer, the company should ensure that the instrument is lodged within the time limit as follows: