(1) Application Form – For the transfer of shares, first of all an application should be made to the company by the transferor or the transferee. It should be signed by both the transferee and the transferee.
(2) Informing the transferee in the case of partly paid-up shares- If the transferee has made an application regarding the transfer of incomplete paid shares, the company shall make necessary inquiries from the transferee in this regard. If the transferee does not raise any objection within two weeks, the transfer registry will be considered valid.
(3) Having proper stamp- It is necessary to have proper stamp on the transfer deed to be presented to the company and it is necessary to mention the signatures of the transferor and the transferee and the name, address and occupation of the transferee etc. The share certificate should also be lit along with.
(4) Loss of deed of transfer If the deed of transfer is lost, then in such a case a written application should be made by the transferee to the company along with proper stamp on it.
(5) Scrutiny of the deed of transfer – When the deed of transfer is deposited with the company, the company gets this document scrutinized by a responsible person. If the transfer deed appears to be correct in all respects, a registration stamp is affixed on it. If there is any error of any kind, the transfer is rejected. After the expiry of the period of such inquiry and information, the entries related to the deed are made by the secretary in the transfer register.
(6) Order of transfer – A resolution can be given by the Board of Directors for the registration of transfer. It is necessary to send a fresh share certificate to the transferee within 2 months from the date of receipt of the transfer order.
(7) Penalty If the company does not accept the transfer of shares, then it should be informed to the transferor and the transferee within 2 months from the date of receipt of the transfer deed, otherwise the company and every guilty officer will be fined ₹ 500 per day. can go.