Following are the statutory rules regarding transfer of shares
(1) Necessary registration – In order to legalize the transfer of shares, it is necessary to register the transfer of shares.
(2) Time of registration – For registering the transfer of shares, the transfer form should be prepared according to the prescribed format and within 2 months of the transfer, the transfer form should be submitted to the company for registration.
(3) Application for registration of transfer of shares – Application for registration of transfer of shares can be made by either the transferor or the transferee.
(4) Loss of transfer form In case of loss of transfer form, the transferee shall again apply to the company in writing and give necessary proof on suitable stamp. If the directors are satisfied with this, they can register the transfer of shares subject to reasonable conditions of compensation.
(5) Transfer of Shares by Statutory Succession The legal heir of a deceased member may transfer his authorized shares as if he were himself a member of the company.
(6) Registration of transfer of paid shares- In case of partly paid shares, in case of application for registration of transfer of shares, it becomes the duty of the company to undertake the transfer of such shares. Transferee before registration