Share Transfer
A share transfer is the process of transferring existing shares from one person to another; either by sale or gift. BESTCA offer services of Share Transfer which means the voluntary handing over of the rights and possibly, the duties of a member (as represented in a share of the company) from a shareholder who wishes to not be a member in the company any more to a person who wishes of becoming a member. Thus, shares in a company are transferable like any other movable property in the absence of any expressed restrictions under the articles of the company.
Persons involved in the transfer
- 1.Subscribers to the memorandum
- 2. Legal Representative, in case of a deceased.
- 3. Transferor
- 4. Transferee
- 5. Company (whether listed/ unlisted).
Share as per the Company Act 2013
Where a director or nominee transfers shares on behalf of another body corporate under section 187 of the Companies Act, 2013;
Where a director or nominee transfers shares on behalf of a corporation owned or controlled by the central or state Government;
Shares transferred by way of deposit as a security for repayment of any loan or advance If they are made with any of the following:-
Shares transferred by way of deposit as a security for repayment of any loan or advance If they are made with any of the following:-
- 1. State Government;
- 2. Central Government;
- 3. State Bank of India;
- 4. Any scheduled bank;
- 5. Financial Institution;
- 6. Any other banking company;
- 7. Trustees who have filed the declarations.
- 8. Any corporation held by the Central or State Government;
For transferring debentures, a standard format can be used as the instrument of transfer:-
1. Get the Articles of Association in case of shares, trust deed in the case of debentures and transfer deed registered either by the transferor and the transferee or on their behalf in accordance with the provisions of the Companies Act, 2013
2. According to Indian Stamp Act and stamp duty notification in force in the state concerned, the transfer deed should need to have stamps. The present stamp duty rate for transfer of share is 25 paise for every one hundred rupees of the value of the share or part thereof. That means for shares valued Rs. 1050, the stamp duty will be Rs. 2.75
3. Check that the stamp affixed on the transfer deed is cancelled at the time of or before the signing of the transfer deed.
4. A person who gives his signature, name and address as approval for transfer must see the transferor and the transferee sign the share/debentures transfer deed in person.