Share Transfer

The shareholders for share transfer of the Company holds the ownership of the company limited by shares. The shareholders in turn appoint Directors to manage the affairs of the Company. Ownership of a company rests with the shareholders and not the Directors. Ownership of a company can be transferred by transfer of shares. Family members or a small group of persons or entities may hold The entire shares of a private limited company. 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. It is important to review the AOA of the Company prior investing. Taxtoday can help you transfer shares of a private limited company by completing the necessary procedures as per Companies Act, 2013.

Reasons to Share Transfer

Shareholders:

They (natural persons or corporate entities or NRIs or Foreign Nationals or Entities ) are the legal owners of the shares of a company. Shareholders are the owners of a Company.

Directors :

Shareholders of a company appoints Directors to manage the affairs of a company. Directors are not owners of a company. Directors and shareholders can be same. For Share transfer.

Authorized 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 value of shares issued to the shareholder.

book mark this link

Leave a Reply