Company Share Transfer

The shares of a company can be transferred from one person to another by executing a share transfer deed.

What is Company Share Transfer ?

The ownership of a company limited by shares is held by the shareholders of the Company. The shareholders in turn appoint Directors to manage the affairs of the Company. Hence, ownership of a company rests with the shareholders and not the Directors. Transfer of ownership of a company can therefore be accomplished by transferring shares of the company from one person or entity to another. Share transfer in a private limited company is usually more restricted when compared to a listed company that is publicly traded. The entire shares of a private limited company are usually owned by a family or a small group of persons or entities. Hence, most of the Articles of Association of a Private Limited Company limit the right of a shareholder to transfer the company's shares to an outsider. Therefore, it is important to review the Articles of Association of the Company prior to effecting a share transfer. IndiaFilings can help you transfer shares of a private limited company by completing the necessary procedures as per Companies Act, 2013.



4 Essential Facts On Share Transfer

Directors

Directors of a company are appointed by the shareholders of a company to manage the affairs of a company. Directors are not owners of a company. However, Directors can also be shareholders and shareholders can also be Directors.


Authorised Capital

The authorised capital of a Company determines the value and number of shares a Company can issue to its shareholders.


Articles of Association

The articles of association of a company defines the rights and responsibilities of shareholders and Directors. Articles of Association of a company can restrict the share transfer in a private limited company.


Paid-up Capital

Paid up share capital of a company is the amount of money for which shares were issued to the shareholder for which payment was made by the shareholder.