It is a process of share transfer of
existing shares from one person to
another. The procedure to transfer
shares in a private limited company
varies from that of a public company.
You should know that the articles of a
company govern the transfer of shares
in a private company. You can start
with the transfer of shares form,
which is Form No. SH-4 or, Securities
Transfer Form. It is pursuant to
Section 56 ofย Companies Act 2013ย (1) and follows the share transfer
rules. This is sub-rule (1) of rule 11
of theย Companies (Share Capital and
Debentures) Rules 2014.
Meaning Of Transfer And Transmission Of
Shares In Companies Act 2013:
Both Transfer and Transmission of
Shares are different from each
other. So, letโs understand how
theyโre different and exactly what
is โtransfer of shares
Transfer of shares means
transferring title of shares
voluntarily, by one party to
another. Whereas, the transmission
of shares means, transferring title
of shares by the operation of law
which a legal heir initiate.
Transfer of shares has a stamp duty
that one needs to pay, based on the
market value of shares, whereas in
the transmission of shares
procedure, there is no stamp duty
that one needs to pay.