|Sl. No.||Particulars||As per Companies Act, 2013||As per Companies Act, 1956|
|1||Section||56||108, 109, 110 & 113.|
|2||Title||Transfer and Transmission of Securities||
108- Transfer not to be registered except on production of instrument of transfer 109- Transfer by Legal Representative 110- Application for Transfer. 113- Limitation of time for issue of Certificates.
|3||Form||SH - 4||Form 7-B|
Section deals with transfer and transmission of all the securities of the Company
|Sections deal with transfer of Shares and Debentures|
|5||Transfer of Partly - paid-up Shares||
In case of such transfer, the company shall give a notice of such application (in Form SH-5) to the transferee and the transferee should give a no-objection to transfer within 2 weeks of the receipt of notice.
|No such extant provision was present in the previous act.|
|6||Transfer of Shares of Deceased Member||
A legal representative can transfer the shares of the Deceased member directly without even holding those shares.
As per the old act, the Legal representative shall transmit the shares on his own name and then he should transfer the same in the name of the others.
|7||Time Lines with Documents||
1. Properly executed SH-4 which is duly signed, stamped and dated should be sent to company within 60 days of its execution.2. Form SH-4 should be accompanies with the securities certificate and in the absence of that the letter of allotment. 3. In case the Certificate is lost the Company may transfer the share after obtaining an Indemnity Bond. 4. The securities shall be transferred and Share Certificates shall be delivered within 1 month of date of receipt by the Company of the valid transfer deed.
|1. Properly executed Form-7B which is duly signed, stamped and dated should be sent to company - In case of Listed Company, on or before closure of register of members or within 12 months from the date of execution. - In all the other cases within 2 months of the execution of transfer deeds. 2. Form-7B should be accompanied with the Share certificate and in the absence of that the letter of allotment. 3. In case the Certificate is lost the Company may transfer the share after obtaining an Indemnity Bond. 4. Every transfer deed or instrument before being signed by the parties shall be stamped, endorsed and signed by the Registrar of Companies and thereafter the parties shall execute such document. 5. The Shares and Debentures shall be transferred and Certificates shall be delivered within 2 month of date of receipt by the Company of the valid transfer deed.|
For Company - Minimum - Rs. 25,000/- Maximum - Rs. 5,00,000/- For Officer in Default - Minimum - Rs. 10,000/- Maximum - Rs. 1,00,000/-
For Non-issuance of Certificates after transfer of Shares-For Company and Officer in default shall be liable for a penalty of Rs. 5,000/- per day till the default continues. For transfer of Shares Any person who transfers shares in contravention of the provisions shall be liable for an imprisonment of 3 years or penalty up to Rs. 50,000/-.
August 4, 2014