Share Transfer

Share Transfer

Company Share Transfer

The ownership of a company limited by shares is held by the shareholders of the Company. The shareholders in turn appoint Directors to manage the affairs of the Company. Hence, ownership of a company rests with the shareholders and not the Directors. Transfer of ownership of a company can therefore be accomplished by transferring shares of the company from one person or entity to another. Share transfer in a private limited company is usually more restricted when compared to a listed company that is publicly traded. The entire shares of a private limited company are usually owned by a family or a small group of persons or entities. Hence, most of the Articles of Association of a Private Limited Company limit the right of a shareholder to transfer the company's shares to an outsider. Therefore, it is important to review the Articles of Association of the Company prior to effecting a share transfer.

Documents Required for Transfer of Shares

These are some required documents mandatory for transfer of shares like;

  • 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.
  • Share transfer form duly signed by the parties.
  • ID and address proof of the transferor and transferee.
  • Proof of payment of consideration of transfer if any.

Process of Transfer of Share Process

There are some steps in the process of transfer of shares like;

  • Notice of intention to transfer shares.
  • Documentation for transfer of shares.
  • Transferor send the share transfer form and certificate to company.
  • Issue of fresh share certificate by the company.

 

  • Professional fees :

  • 5999/-

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