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Transfer of Shares

The transfer of shares refers to the process of transferring ownership of shares from one shareholder to another. This can be done either through a private sale or through a formal agreement. To initiate the transfer, the shareholder wishing to sell or transfer their shares must fill out a share transfer deed and submit it to the company for approval. The transfer deed needs to be signed by both the transferor (seller) and the transferee (buyer), and the company will update its shareholder records accordingly. In the case of a private company, the approval of the board of directors is often required, as the company’s Articles of Association may specify restrictions on share transfers. The Ministry of Corporate Affairs (MCA) must be notified of the transfer by filing necessary forms, ensuring that the company’s shareholding records remain accurate and compliant with the law.

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