A Company having share capital: The Company shall not register transfer of securities of the Company or member’s interest in the Company other than beneficial owners without a proper instrument of transfer within a period of 60 days from the date of execution.
A Stock Transfer Form needs to be completed to enable to transfer to take place. Information required is as follows: The name of the company and its Company Registration number. Quantity of shares to be sold.
Equity shares are transferable, i.e. ownership of equity shares can be transferred with or without consideration to other person.
Any transfer of unquoted (unlisted) shares shall be subject to determination of Fair market value calculated in accordance with the method (formula) as prescribed in the above-mentioned rule which shall not be less than book value of shares which has to be certified by a Category-I Merchant banker or Chartered …
Stamp Duty on Shares And Debentures
|TRANSACTION||MECHANISM||RATE OF DUTY|
|Transfer of shares and debentures||Other than Stock Exchange and Depository (In case of Private Company)||Shares Delivery Based: 0.015% Non Delivery Based 0.003% Debenture: 0,0001%|
|Issue of shares and debentures||For all||Shares 0.005% Debenture: 0.005%|
You may see it referred to as form J30 or a share transfer form, but it means the same thing. The person selling the shares (often called the ‘transferor’) should complete their details on the stock transfer form, including their name and address as well as identifying the shares to be transferred, and then sign it.
Australia: Shares can be transferred to a third party, without the consent of the owner of the shares.
How to Transfer Shares of a Private Limited Company
- Step 1: Obtain share transfer deed in the prescribed format.
- Step 2: Execute the share transfer deed duly signed by the Transferor and Transferee.
- Step 3: Stamp the share transfer deed as per the Indian Stamp Act and Stamp Duty Notification in force in the State.
restrictions on shareholders selling their shares. Without such restrictions, a shareholder can freely sell his shares, which might result in the remaining shareholders being in business with someone they do not know or approve of; the ability to force certain shareholders to sell their shares to the others.
Disadvantages of Equity Shares:
- If only equity shares are issued, the company cannot take the advantage of trading on equity.
- As equity capital cannot be redeemed, there is a danger of over capitalisation.
- Equity shareholders can put obstacles for management by manipulation and organising themselves.
All shares that are not preferential shares are equity shares and are also known as ordinary shares. A person who holds equity shares has the right to vote in the company’s decisions. As an equity shareholder, you are entitled to receive a claim to any profits paid by the company in the form of dividends.