Share Transfer
The ownership structure of a Private Limited Company in India is defined by its shareholding pattern. To bring in new investors or alter ownership, the company must facilitate share transfers. Selling company shares can serve as a strategic approach to attract fresh investors or transition business control while ensuring compliance with regulatory guidelines.
- Share transfer entails the voluntary transfer of both rights and potentially responsibilities from one company member to another. This shift occurs when an existing shareholder opts to exit the company, passing their rights and duties to an individual eager to become a member.
- Consequently, company shares are transferable akin to other movable assets, unless specified restrictions are outlined within the Company's Articles.
For the transfer of shares in a Private Limited Company, specific procedures and restrictions must be adhered to. Here's a step-by-step guide:
