Transfer and Transmission of Shares and Debentures

The word “transfer” is surely an act from the parties in which title to property is transferred derived from one of person to a different. (Person comes with legal person e.g. company, body corporate, etc.)

The word “transmission” is called transfer of title to parties by operation of law.

Transfer of shares means a voluntary passing of property in a few shares derived from one of person to a different by presenting to your company a duly stamped and executed instrument of transfer, by or on behalf on the transferor and transferee containing their names, addresses and occupations together with the share certificates relating for the shares being transferred, whereas transmission however, necessitates the passing on the property in shares by operation of law around the happening for these events like death, insolvency or lunacy of the shareholder/debentureholder etc.

A share or debenture transfer is usually a procedure where an existing shareholder or debenture holder transfers his/her share(s) or/and debenture(s) to a pre-existing shareholder(s), or any one else dependant on the transaction and circumstances from the case.

Under regulations anyone incorporates a right to transfer their share(s) or / and debenture(s) to the existing one or anybody else; however a non-public company may by its articles of association (AOA) restrict the to certainly transfer their shares so long as all the relevant provisions from the Ordinance and AOA from the company are complied with and due procedure is followed.

Provisions of Law Relating To Transfer & Transmission of Shares or/and Debentures:

Sections 74 to 81 on the Ordinance cope with issues governing the transfer and transmission of shares or / and debentures.

Limitation on Transfer of Shares and Debentures:

Every company should transfer the shares, debentures or debentures stock within fortyfive days of application.

The company shall within calendar month or the spot that the transferee can be a central depositary company within five days in the date on what the instrument of transfer is lodged using the company, will notify the defect or invalidity for the transferee who shall after taking off the identified defect shall re-lodge the transfer deed together with the company.

These conditions, in relation to a non-public limited company will probably be subject to such limitations and restrictions as imposed by its AOA, if any.

The company shall not register transfer of shares or debentures unless proper instrument of transfer duly stamped and executed with the transferor as well as the transferee may be delivered for the company.