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Kindly upload the procedure for Transfer of share…

Kindly upload the procedure for Transfer of shares of a Pvt ltd company and forms.Format of resolut…

Kindly upload the procedure for Transfer of shares of a Pvt ltd company and forms.

Format of resolutions and forms

Kanishka Apr. 06, 2023

The procedure for transferring shares of a private limited company involves the following steps:

  1. Get a Share Transfer Deed: The seller and buyer of the shares should execute a share transfer deed in Form SH-4. The share transfer deed should be stamped as per the Stamp Act and signed by the transferor and transferee in the presence of a witness.
  2. Submit the Share Transfer Deed to the Company: The seller should submit the share transfer deed to the company along with the share certificate or letter of allotment.
  3. Board Meeting: The board of directors of the company should approve the transfer of shares in their meeting.
  4. File MGT-14 (not in every case): The company should file Form MGT-14 with the Registrar of Companies (ROC) within 30 days of passing the board resolution.
  5. Issuance of New Share Certificate: After the transfer approval the company should issue a new share certificate in the buyer's name and cancel the old share certificate.
  6. Update the Register of Members: The company should update its register of members and enter the details of transferring shares.
  7. Update the Share Transfer Deed: The company should update the share transfer deed and return it to the buyer.

    Here are the formats of some important resolutions and forms that are required for the transfer of shares:

    Board Resolution for Transfer of Shares:
    "RESOLVED THAT the transfer of [Number of shares] shares of [Name of the Company] held by [Name of the Seller] to [Name of the Buyer] be and is hereby approved.

    FURTHER RESOLVED THAT [Name of the Company] be and is hereby authorized to take all necessary steps to give effect to the above transfer.

    RESOLVED FURTHER THAT a certified true copy of this resolution be provided to [Name of the Buyer] for their records."

    Share Transfer Deed (Form SH-4)
    Please see the attachment.

    Clarification on MGT-14 filing:

Form MGT-14 is not required to be filed for every share transfer in a private limited company. It is required to be filed in case of any change in the shareholding pattern of the company due to share transfer.

Note: The above formats are for reference only. The actual formats may vary depending on the specific requirements of the company and the applicable laws and regulations.