Share Transfer

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Frequently Asked Qustion

What is the stamp duty on shares?
Where do I get these stamps?
I want to add another joint-holder name to my shareholding. What is the procedure that I should follow?
Can a company gift shares to another company?

Company Share Transfer

The ownership of a company limited by shares is held by the shareholders of the Company. The directors to manage the affairs of the Company are appointed by these share holders. The ownership of a company is olnly change by the share holders not by the directors. It only done by transferring shares of the company from one person or entity to another. Share transfer in a pvt ltd is more restricted than a publicly traded because in pvt ltd company are usually owned by family members or a small group but in other hand in case of ltd company right of a shareholder to transfer to outsider. So, it is very important to review the Articles of Association of the Company prior to effecting a share transfer.

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Reasons to Share Transfer

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Directors

Directors of a company are appointed by the shareholders of a company to manage the affairs of a company. Directors are not owners of a company. However, Directors can also be shareholders and shareholders can also be Directors.

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Authorized Capital

The authorized capital of a Company determines the value and number of shares a Company can issue to its shareholders.

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Articles of Association

The articles of association of a company defines the rights and responsibilities of shareholders and Directors. Articles of Association of a company can restrict the share transfer in a private limited company.

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Paid-up Capital

Paid up share capital of a company is the amount of money for which shares were issued to the shareholder for which payment was made by the shareholder.

 

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