1. Relevant provisions of the Companies Act 2013 that are applicable to the transfer of shares of a private limited company?
a. Section 56 and 58 of the Companies Act 2013
b. Rule 11 of the Companies (Share Capital and Debentures) Rules 2014
c. Schedule 1 Table to the Companies Act 2013
2. How many types of the transfer of shares of a private limited company are there?
d. Normal Transfer of Shares including Sale / Purchase or Gift or Renunciation etc.
e. Transmission of Shares by operation of law
3. Which form is to be submitted for transfer of shares of a private limited company?
Form SH-4 (also known as instrument of transfer) shall be used as an instrument for transfer of shares of a private limited company. (Rule 11 of the Companies (Share Capital and Debentures) Rules 2014)
4. In how much time the form SH-4 is required to be submitted to the company?
The form SH-4 shall be submitted to the company within sixty (60) days from the date of such execution. (Rule 11 of the Companies (Share Capital and Debentures) Rules 2014)
5. What if the SH-4 is not submitted within the stipulated period of Sixty (60) days?
If SH-4 has not been delivered within 60 days to the company, then it may register the transfer after getting an indemnity bond from the applicant having such terms as Board may think fit. (Refer Section 56 of the Companies Act 2013)
6. Who is required to submit the documents for getting a transfer registered by the company?
The documents for transfer can be submitted to the company either by the transferor or the transferee. (Refer Section 56 of the Companies Act 2013)
7. What documents are required for the transfer of shares of a private limited company is defaulted or not followed?
a. Form SH-4 duly stamped, dated, and executed by or on behalf of the transferor and the transferee and specifying the key particulars therein of the transferor and transferee.
b. If the SH-4 has been lost the company may register the transfer after getting an indemnity bond from the applicant having such terms as Board may think fit
c. Share Certificates
d. If Share Certificates are not yet issued by the company, then the allotment letter of shares. (Refer Section 56 of the Companies Act 2013)
8. When the transferee becomes the owner of the shares transferred?
The transferor shall be deemed to remain a holder of the share until the name of the transferee is entered in the register of members in respect thereof only after such entry the transferee becomes the owner of the shares. (Schedule 1 Table F of the Companies Act 2013)
9. What is the penalty if the provisions for transfer of shares of a private limited company is defaulted or not followed?
The company and every officer of the company who is in default shall be liable to a penalty of Rs. 50,000/- (Refer Section 56 of the Companies Act 2013)
10. Hello This is test 2
