Procedure for share transfer as per companies act 2013
- Transferor shall give notice to the company for transfer of share with full detail of transferee and transferor shall mention their share certificate no and folio number
- Price of the share shall be decided by director or auditor of the company.
- Transferor shall execute Share Transfer deed in SH-4 in favour of transferee.
- Transfer deed should affix Stamp as per Indian Stamp act
- Rate of Stamp is 25 paisa per Rs. 100 of the value of share
- On the transfer deed signature of transferor and transferee must be witness by a person
- Transfer deed shall be submitted to company along with share certificate
- On receipt of share transfer deed and share certificate company shall register the name of Transferee in the place of transferor
Some provision regarding transfer of share
- Transfer of share is govern through section 56 of the companies act 2013 and Rule 11 of the companies (share Capital and Debenture) Rule 2014 provides that company shall not register any transfer of share unless there is proper transfer deed duly stamped and executed by transferor and transferee in SH-4
- Partly paid-up share shall not be registered unless Transferee has furnished SH-5.
- Transfer deed shall be delivered to company within 60 days of notice to company.
- Transfer deed shall bear stamp duty at 25 paisa on per Rs, 100 value of share.
- The company shall issue share certificate to transferor within one month from the date of furnishing of transfer deed to company as per section 56(4)
- As per section 58(3) of the companies act 2013the company has power to refuse to register transfer of share within 30 days from the date notice to company for transfer of share.
- As per section 5(4) of the companies act 2013 transferee may file appeal within 60 days to tribunal for refusal of transfer of share.
- In case of non-compliances of the provision the company shall be punishable with fine not less than 25000and maximum Rs. 500,000.00 and every officer who is in default shall punishable with fine not less than 10,000and maximum Rs. 100,000.00