Search Your Query Here

Board Resolution for Transfer of Shares under Companies Act

A company can consider and approve the transfer of securities between the concerned parties only when a proper instrument of transfer (Form No. SH-4: Securities Transfer Form) is duly filled in, executed, dated and stamped by or on behalf of the transferor and the transferee and has been delivered to the company within 60 days from the date of execution, along with the certificates or the letter of allotment of securities, as the case may be.

board resolution for transfer of shares under companies act 2013In case the instrument of transfer has been lost or if it has not been delivered within the prescribed period, the company may register the transfer on such terms as to indemnity as the Board may think fit.

Do refer section 56 of the Companies Act, 2013 and relevant rules for detailed provisions on the transfer and transmission of shares of a company.

Following is the format of the extracts of minutes containing the board resolution approving an item of business on the transfer of shares of the company.

SAMPLE

#. To consider the requests received for transfer of securities

The Chairman informed the Board that the company has received three Securities Transfer Forms duly filled in, signed and stamped for transfer of a total of four hundred and fifty equity shares of the company.

The company has verified the authenticity of the forms, certificates and documents received in this regard and has found these to be in order as per the policy of the company for this purpose. All these documents were tabled before the Board for perusal.

Upon motion duly passed and seconded, it was:

“RESOLVED THAT the consent of the board of directors of the company be and is hereby accorded for the transfer of equity shares as per the details given hereunder:

Sl. No.
Name of Transferor
Folio No.
Name of Transferee
No. of Shares Transferred
Certificate No.
Distinctive Nos.
1.
Mr. ABC
123
Ms. PTY
100
43
901-1000
2.
Ms. XYZ
56
Mrs. LTD
150
27
101-250
3.
Mr. MKL
289
Mr. INC
200
185
1351-1550
Total
450


FURTHER RESOLVED THAT (Name of the Officer, (Designation) be and is hereby authorised and directed to enter the names of the transferees as members in the Register of Members of the company and to make necessary endorsement on the reverse of the respective share certificates.

FURTHER RESOLVED THAT (Name of the Officer, (Designation) be and is hereby authorised to issue the certificates to the respective members and to do all such acts, deeds and things as may be necessary or incidental in this connection.”

Comments