Transfer of Shares
Transfer of shares means the transfer of ownership of the shares from one person to another. There may be times when a Company wants to change the share structure either by adding a new shareholder or by changing the existing proportion of shares between shareholders. A share transfer is the process of transferring existing shares from one person to another; either by sale or gift.
Transfer of shares is effective by removing the name of the existing shareholder from the register of members and by inserting the name of the new shareholder in the register of members. Thus it is mandatory to alter the register of members immediately after the share transfer.
WHAT IS THE VALUE OF SHARE TRANSFER STAMPS TO BE AFFIXED ON THE TRANSFER DEED?
Stamp duty for transfer of shares is 0.25% of consideration i.e. the amount to be paid is 25 paise for a share transfer of Rs. 100 as per Notification No. SO 130(E), dated 28-01-2004 issued by the Ministry of Finance, Department of Revenue, New Delhi.
WHY SHARE TRANSFER DEED IS TO BE PREPARED?
One of the most important documents which are prepared at the time of transfer of shares is SHARE TRANSFER DEED. In share transfer deed every detail of transferor and transferee like number of shares transfer, date of transfer, shall be mentioned and date of execution shall also mentioned in deed.
Confirm details of transfer
1.Client will provide documents
2. Confirm details of transfer
3. Board Meeting.
4. Share transfer deed.
5. Stamp duty.
6. New Share Certificate.