Can you transfer shares for nil consideration?

Can you transfer shares for less than nominal value?

A share cannot be issued on terms a shareholder will pay the company less than that nominal value for the share. … However, shares can be issued for more than their nominal value – ie on terms the shareholder pays a ‘premium’.

What does consideration mean when transferring shares?

Answer. Firstly, the Consideration Paid is the amount the new Shareholder will pay in exchange for the shares. The Amount Paid, as recorded in ASIC, is the original value of the Shares when they were originally issued.

What is nil consideration?

Enter ‘Nil’ as the consideration if you do not give any consideration for the shares. If you give consideration in money for the shares, state how much.

On what grounds can transfer of shares be rejected?

In case due call money has not been paid by the transferor. When the transferor is a debtor of the company, and the company has a lien on such shares. If instrument is incomplete, irregular and defective, and not properly stamped. On other reasons, just and equitable and are in the general interests of the company.

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Can I give my shares to a family member?

Stocks can be given to a recipient as a gift whereby the recipient benefits from any gains in the stock’s price. Gifting stock from an existing brokerage account involves an electronic transfer of the shares to the recipients’ brokerage account.

What is the stamp duty for transfer of shares?

The present stamp duty rate for transfer of share is 25 paise for every one hundred rupees of the value of the share or part thereof. That means for shares valued Rs. 1,050, the stamp duty will be Rs. 2.75.

What is the procedure for transfer of shares?

How to Transfer Shares of a Private Limited Company

  1. Step 1: Obtain share transfer deed in the prescribed format.
  2. Step 2: Execute the share transfer deed duly signed by the Transferor and Transferee.
  3. Step 3: Stamp the share transfer deed as per the Indian Stamp Act and Stamp Duty Notification in force in the State.

How do I transfer ownership of shares?

You may see it referred to as form J30 or a share transfer form, but it means the same thing. The person selling the shares (often called the ‘transferor’) should complete their details on the stock transfer form, including their name and address as well as identifying the shares to be transferred, and then sign it.

What does share consideration mean?

With shares as consideration, the seller will be issued shares within the buyer’s own company. … It is possible for a share purchase to be effected by the seller being granted debt in the buyer, which is typically evidenced by a loan note held by the buyer.

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What shares are exempt from stamp duty?

Are there Reliefs and Exemptions for Stamp Duty?

  • shares in a company that is not incorporated in the UK and doesn’t maintain a UK based share register.
  • stock quoted on a market outside the UK.
  • gilts or corporate bonds.
  • shares issued in a flotation, or new shares issued in a rights issue.

What does transferor mean?

A transferor is one party to a transfer of property or services. The transferor transfers property to another party, known as the transferee, to complete a legal transaction. A legal transfer must involve at least two parties, each with different responsibilities.

What is chargeable consideration?

In a nutshell, the chargeable consideration is the price paid for the property. The term is defined in the legislation as being any consideration ‘in money or money’s worth’ given for the subject matter of the land transaction in question. … Money may be in pounds sterling or in a foreign currency.

Under what circumstances can a company refuse to register a transfer?

1. that the instrument of transfer is not proper or has not been duly stamped and executed or that the certificate relating to the security has not been delivered to the company or that any other requirement under the law relating to registration of such transfer has not been complied with.

Can directors refuse to transfer shares?

(5) The directors may refuse to register the transfer of a share, and if they do so, the instrument of transfer must be returned to the transferee with the notice of refusal unless they suspect that the proposed transfer may be fraudulent.

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Who has right to refuse transfer of shares?

If a private limited company refuses to register the transfer of shares, it shall send a notice of refusal to the transferor and the transferee or to the person giving intimation of such transfer within thirty days from the date on which the instrument of transfer was delivered to the company.