Call our Filingpoint Transfer of Shares Expert +91 72999 72500
Filingpoint Shares of a company can be transferred between two individuals or entities by executing a transfer of shares deed. This document clearly delineates all aspects of the transfer and also shows the name of the new owner. The company then issues a new share certificate to the transferee. This process is usually done electronically. Depending on the tax status of the transferor and transferee, capital gains tax may be applicable. The transferee might also be liable for stamp duty which is typically 0.5% of the value paid for the shares.
Most public companies allow the free transfer of their shares. However, private and unlisted companies might impose some restrictions to ensure their control over the business remains intact. These restrictions are often mentioned in the constitutional documents and shareholders' agreement of the company.
If the company directors decide to refuse a share transfer, they are required to provide a valid reason for their decision. This reason will be assessed by the Tribunal whether it is reasonable and bona fide or not.
Once the share transfer deed is filed, the company has to register the transfer within 30 days of receiving it along with the necessary documents. The company then either credits the shares in the transferee's demat account (shareholder is required to furnish the Client Master List with the seal of the Depository Participant) or will deliver the physical certificates after re-materialising the same, as per the option chosen by the shareholder.
Contact Filingpoint Transfer of Shares Expert +91 72999 72500
Comments
Post a Comment