Share Transfer

Share transfer is the process by which ownership of shares in a company is legally moved from one person or entity to another. This transaction typically involves the execution of a share transfer deed, often in Form SH-4, signed by both the transferor and the transferee. Upon receiving the duly executed deed and relevant share certificates, the company’s board of directors reviews and approves the transfer, subsequently updating the register of members to reflect the new ownership. In the case of dematerialized shares, the process occurs electronically through depositories like NSDL or CDSL. Proper documentation and adherence to the Companies Act and company’s Articles of Association are crucial to ensure a valid and legally binding transfer of ownership.