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Share transfer to another person

Posted: 3 years ago

Shares of a company are movable property and thus can be transferred like any other property. A public company can freely transfer its shares, but there are some restrictions on the transfer of shares by a private company. The limits are imposed to protect the rights of investors and shareholders.

One have to check the following things before transferring shares of a private limited company.

• Check for restrictions in the AOA.

• First, offer shares to existing members

• Enter into a Share Transfer Agreement

• If they The transfer of Shares are restrict

• The share transfer form is SH-4 (Sec 56)


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