Share Transfers: Procedures, Time Limits, and Penalties

Share Transfers: Procedures, Time Limits, and Penalties

Introduction:

In the realm of corporate structure, the transferability of shares stands as a pivotal characteristic. Shares and debentures, being movable properties, hold transferable status as dictated by the company’s articles, particularly in the case of public companies.

Meaning of Share Transfer:

Share transfer encompasses the voluntary transfer of rights and, potentially, duties of a company member represented through shares. This transfer manifests when a shareholder opts to cease membership, passing on rights and obligations to an aspiring member.

Persons Involved:

Persons involved in the share transfer process include subscribers to the memorandum, legal representatives in case of a deceased member, transferors, transferees, and the concerned company, whether listed or unlisted.

Procedure for Share Transfer under the Companies Act, 2013:

Time Limits:

Penalties:

Understanding the intricacies of share transfers, adhering to procedural requirements, and respecting prescribed timelines are paramount to maintaining regulatory compliance and corporate integrity.

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