In order to understand the statutory provisions related to transfer of shares, Section 56 of Companies Act, 2013, Rule 11 of Companies (Share Capital & Debentures), Rules 2014 and provisions given in model articles of association in Table ‘F’ of Schedule-I can be followed.
As the aforementioned third step of transfer of shares in a private company involves filling up the form no-SH.4, it has to be taken care that the share transfer deed in form SH-4 is duly executed by the transferor and the transferee. Moreover, the form needs to be duly stamped with an accurate date.
The form no-SH.4 should include the specified name of both the transferor and transferee, their father’s name, address, occupation and folio no.. It should also include Distinctive No, Certificate No. of share transferred, Nominal Value of Shares and Consideration Received.