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Transposition of Shares
It’s a process of re-arrangement /
inter-changing of the order of name of shareholders under a folio in the
Register of Members of the Company.
Process/Procedure of Transposition
The joint shareholders have to request to the
company in writing along with copy of their PAN card and the share certificates
for the respective shares.
The application letter should be duly signed
by all the joint shareholders requesting for inter-change of names. The new order in
which the name(s) will appear in the folio, should also clearly come out in the
Necessary changes will accordingly be made in
the share certificate of such joint shareholders.
Mr. F & Mr. M are joint shareholders
holding 75 shares under folio no. 005 in VOP Limited. Wherein Mr. M is the
first holder of the shares meaning the name of Mr. M is mentioned at first
place in the Register of Member. Now both have requested the Company under a
written communication asking the company to change the order of name and make
Mr. F the first holder for the 75 share under folio no. 005. The Company has
done the re-arrangement and has changed the order to the effect of the same.
This process is called transposition of shares.
(1) No need to execute share transfer deeds
for this purpose.
(2) As no execution of transfer deeds, no payment
of stamp duty.
This transposition process will also be
helpful in case joint holders want to dematerialise the shares and connect to
their existing demat account, but the current demat account is having different
order of name.
While some companies allow part transposition
of shares, some companies do not permit this.