Pvt ltd share transfer process

Click here to view about the company registration under the legal form type private limited company in Bangalore.

Private limited company registration

So far we have seen about the private limited company registration procedures to be followed with Corproots consultants in Bangalore. There is methodology of implementing the legal form to a company is the company registration procedure. In India it is this private limited company registration seems to be an important type of legal form that can be made easily. Business people in India choose private limited company as the best legal form for the safety and security of the company assets.

The members involved in the private limited company have their limited liability for the protection of company’s valuable assets. The capital investment in the company do not have any problems if you want to raise the capital in between.

Company ownership is being evaluated based on the shareholding, it can be clear that the any new investor is adding to the company or the case of relieve of an investor in the company have their role in the shareholding. The share transfer process in private limited company is allowed with evaluation of certain details is provided as follows:

Every company is registered under a particular legal form by the submission of required documents like MOA (Memorandum of Association), AOA (Articles of Association) so on. So that role of Share transfer is little important and let us see the basics about it,

Pvt ltd share transfer process restrictions in AOA of the company

A partnership is the most likely legal form related to this private limited company registration which acts as a closed group. AOA of the company can able to restrict the company shares, so it is necessary to review the AOA in the beginning of the share transfer procedure.

Rights of shareholders in Pvt ltd share transfer process

There are 2 forms for the shareholders for the share transfer process in the company is:

  • Rights of Pre- Exemption
  • Powers of directors to refuse

Rights of Pre- Exemption:                                               

Each shares in the company by the shareholders if wants to sell then this process is initially limited within the company itself. That is clear for the share transfer can be performed with the shareholders in the company at the first instant. Even there is formulae available to calculate the shares and which is provided in the AOA of the company. If suppose the shareholders in the company is totally not interested for the share transfer then an outsider can avail it.

Powers of directors to refuse:

If the share transfer process is restricted in the company at any instances will be mentioned in the AOA. Freedom of restriction can be maintained only if it is specified in the AOA by the director board of the company. Any kind of share transfer restriction is practiced then AOA is the major reason behind for every company. While considering the private limited company the share transfer is not a total prohibition.

Start procedures for the share transfer is provided as follows:

Initiation of Pvt ltd share transfer process               
  • As we have already discussed the company’s AOA has the complete role on the rights of share transfer. AOA evaluation seems to be an important step that triggers for the share transfer in the beginning. If there is anything mentioned regarding no transfer like that has to be addressed.
  • If everything in AOA is allowed for the share transfer then the 2nd step initiated is the submission of notice to the company by the shareholder for the transfer process
  • AOA of the company have the details of price of share value that wants to be sell in the company at the point of time. Price determination is completely controlled by the shareholders or directors of the company.
  • Finally the company offer a notice based on the available shares including the share value, Last date is provided to purchase the shares

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