Can shares be transferred for consideration other than cash?

According to section 62(1)(c) of the Act, a company can issue shares to any persons, if it is authorised by a special resolution, either for cash or for consideration other than cash, if the price of such shares is determined by the valuation report and any other conditions as may be prescribed.

What is a consideration stock transfer?

Consideration for Share Transfer means the amount to be paid by the Purchaser to the Vendors, as the consideration for the equity interest in the Company to be transferred from the Vendors to the Purchaser; Sample 2.

How do I fill out a j30 stock transfer form?

How to complete a stock transfer form in 10 Steps

  1. 1 Consideration money.
  2. 2 Full name of Undertaking.
  3. 3 Full description of Security.
  4. 4 Number or amount of Shares, Stock or other security.
  5. 5 Name(s) and address of registered holder(s)
  6. 6 Signature(s)
  7. 7 Name(s) and address of person(s) receiving the shares.

What do you do with a stock transfer form?

Be sure to store the returned stock transfer form with your company records, issue a new share certificate, and update your statutory register of members, accordingly….You also need to provide the value of what you paid for the shares in either:

  1. cash.
  2. other stock and shares.
  3. debt.

Can shares be transferred without consideration?

Transfer without consideration is Void: Share transfer without consideration is void. Transfer in family arrangement: Transfer of shares on basis of family arrangement without complying with provision of Section 108 is valid.

Can shares be transferred for nil consideration?

In some cases, shares may be gifted to family members. In some circumstances a shareholder may no longer wish to be involved with a company and will transfer the shares to another person for no payment (often referred to as nil consideration).

Can you transfer shares for nil consideration?

What documents are required to transfer shares?

Documents

  • Income Tax PAN. Income Tax PAN of both transferee and transferor.
  • Passport Photo. Passport Photo of both the transferee and transferor.
  • Aadhaar Card. Voter ID Card of both the transferee and transferor.
  • Share Certificates. Original Share Certificates of the Transferor.

What is sh4 form?

Form SH-4 is needed to be send to the Company by the transferor or the transferee of the shares within sixty days from the date of execution of share transfer agreement along with the share transfer certificate or certificate relating to securities.

What does for nil consideration mean?

This is known as the chargeable consideration. Enter ‘Nil’ as the consideration if you do not give any consideration for the shares. If you give consideration in money for the shares, state how much. If you give consideration other than in money for the shares, state what you have given.

What is sh form?

[Pursuant to section 56 of the Companies Act, 2013 and sub-rule (1) of rule 11 of the Companies. (Share Capital and Debentures) Rules 2014]

How do you fill a sh-4?

In form SH-4, Transferee’s name(s) should be filled same as mentioned in their PAN CARD. There should not be any difference of any letter or word due to whatsoever reason. 4. In case any of Transferor(s) is deceased then write DECEASED in place of his/her signature and attach notarized or original death certificate.