Any transfer of unquoted (unlisted) shares shall be subject to determination of Fair market value calculated in accordance with the method (formula) as prescribed in the above-mentioned rule which shall not be less than book value of shares which has to be certified by a Category-I Merchant banker or Chartered …
Can shares be transferred at less than face value?
Yes there is no restriction to transfer of shares less then the face value of shares. But the market price is mandatory to consider.
Can you transfer shares at less than nominal value?
A share cannot be issued on terms a shareholder will pay the company less than that nominal value for the share. However, shares can be issued for more than their nominal value – ie on terms the shareholder pays a ‘premium’.
Are there restrictions on the transfer of shares?
Section 2 (68) of the Companies Act 2013 provides that the Articles of a private company shall restrict the right to transfer the company’s shares. This restriction is binding upon the company and members thereof.
How to transfer share certificate in favour of transferee?
G. ISSUE OF SHARE CERTIFICATE OF TRANSFER: The Company will within one month of passing of Board Resolution will issue share certificate in the favour of transferee. {56 (4) (c)}. Company will endorse the name of Transferee behind the Share Certificates. Articles of private company shall restrict the right to transfer the company’s shares.
What happens when you transfer shares of stock in a company?
If all steps are properly taken, the company’s board of directors will acknowledge the new ownership of the respective stocks and document the date, price, and other details of the transaction.
How are shares of private limited company transferred?
In general, below mentioned procedure is followed by a private limited company to give effect to the transfer of shares. Here, transferor is the person desiring to sell the shares (Seller) and transferee is the person who desires to buy those shares (Buyer).
