{"id":2374,"date":"2022-03-23T08:53:12","date_gmt":"2022-03-23T08:53:12","guid":{"rendered":"https:\/\/www.akgvg.com\/blog\/?p=2374"},"modified":"2022-03-23T10:40:48","modified_gmt":"2022-03-23T10:40:48","slug":"section-56-provisions-of-transfer-of-shares-under-companies-act-2013","status":"publish","type":"post","link":"https:\/\/www.akgvg.com\/blog\/section-56-provisions-of-transfer-of-shares-under-companies-act-2013\/","title":{"rendered":"Section 56 &#8211; Provisions of transfer of shares under companies act 2013"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-2381 size-full\" src=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/03\/Section-56-provisions-of-transfer-of-shares-under-companies-act-2013-1.jpeg\" alt=\"Section 56 provisions of transfer of shares under companies act 2013\" width=\"1000\" height=\"1000\" srcset=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/03\/Section-56-provisions-of-transfer-of-shares-under-companies-act-2013-1.jpeg 1000w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/03\/Section-56-provisions-of-transfer-of-shares-under-companies-act-2013-1-300x300.jpeg 300w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/03\/Section-56-provisions-of-transfer-of-shares-under-companies-act-2013-1-150x150.jpeg 150w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/03\/Section-56-provisions-of-transfer-of-shares-under-companies-act-2013-1-768x768.jpeg 768w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/03\/Section-56-provisions-of-transfer-of-shares-under-companies-act-2013-1-230x230.jpeg 230w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p style=\"text-align: justify;\"><strong>Conditions for Transfer<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-2375\" src=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/03\/Capture-8.png\" alt=\"\" width=\"734\" height=\"348\" srcset=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/03\/Capture-8.png 734w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/03\/Capture-8-300x142.png 300w\" sizes=\"auto, (max-width: 734px) 100vw, 734px\" \/><\/p>\n<p style=\"text-align: justify;\"><strong><u>When the transfer instrument has been presented late or lost <\/u><\/strong><\/p>\n<p style=\"text-align: justify;\"><strong><u>Transfer instrument has been lost<\/u><\/strong><\/p>\n<p style=\"text-align: justify;\">Provided that where the instrument of transfer has not been delivered within the prescribed period(within <strong><em>60 days<\/em><\/strong> from the date of such execution)or the instrument of transfer has been lost, the company may register the transfer on such terms as the Board may think fit.<\/p>\n<p style=\"text-align: justify;\"><strong><u>Transfer in case of partly paid shares<\/u><\/strong><\/p>\n<p style=\"text-align: justify;\">Section 56(3) states that where the applicant made an application relates to partly paid shares, the transfer shall not be registered, unless the company gives the notice of the application, <strong><em>in Form No. SH.5<\/em><\/strong>, to the transferee and he gives no objection (NOC) to the transfer within <strong><em>2\u00a0<\/em><\/strong><b><i>weeks from<\/i><\/b>\u00a0the receipt of the notice.<\/p>\n<p style=\"text-align: justify;\"><strong><u>The time limit for delivery of certificates<\/u><\/strong><\/p>\n<p style=\"text-align: justify;\">Section 56(4) states that every company shall deliver the certificates of all securities allotted, transferred, or transmitted, unless prohibited by any provision of law or any order of Court, Tribunal, or other authority\u2013<\/p>\n<p style=\"text-align: justify;\">(i) in the case of subscribers to the memorandum of articles (MOA)<\/p>\n<ul style=\"text-align: justify;\">\n<li>within <strong><em>2 months<\/em><\/strong> from the date of incorporation of the company<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">(ii)in the case of any allotment of any of its shares\/securities<\/p>\n<ul style=\"text-align: justify;\">\n<li>within <strong><em>2 months<\/em><\/strong> from the date of allotment of shares\/securities<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">(iii)intimation of transmission, in the case of a transfer or transmission of securities<\/p>\n<ul style=\"text-align: justify;\">\n<li>within a period of <strong><em>1month<\/em><\/strong> from the date of receipt of the instrument of the transferor, as the case may be<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">(iv)in the case of any allotment of debenture\/debt securities<\/p>\n<ul style=\"text-align: justify;\">\n<li>within a period of <strong><em>6 months <\/em><\/strong>from the date of allotment of debentures<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong><em>NOTE:<\/em><\/strong> The company shall intimate the details of allotment of securities to the depository immediately on the allotment when such securities are dealt with in a depository<\/p>\n<p style=\"text-align: justify;\"><strong><u>Transfer of shares of a deceased person<\/u><\/strong><\/p>\n<p style=\"text-align: justify;\">Section 56(5) states that the interest of a deceased person or any security of a deceased person in a company made by his legal representative, even if the legal representative is not a holder thereof, it shall be valid as if he had been the holder at the time of the execution of the instrument of transfer.<\/p>\n<p style=\"text-align: justify;\"><strong><u>Punishment for Default<\/u><\/strong><\/p>\n<p style=\"text-align: justify;\">Where any default is made with regards to the provisions<\/p>\n<ul style=\"text-align: justify;\">\n<li>the company and<\/li>\n<li>every officer of the company<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">who is in default shall be liable for a penalty of <strong><em>50,000 rupees?<\/em><\/strong><\/p>\n<p style=\"text-align: justify;\">where any depository or depository participant (DP), to deceive\/defraud a person, has transferred shares, it shall be liable <strong><em>under section 447.<\/em><\/strong><\/p>\n<p style=\"text-align: justify;\">This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. <a href=\"https:\/\/www.akgvg.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>AKGVG &amp; Associates<\/strong><\/a> does not intend to advertise its services through this.<\/p>\n<p style=\"text-align: justify;\">Posted by:<\/p>\n<p style=\"text-align: justify;\">CS Neetu Saini<\/p>\n<p style=\"text-align: justify;\">AKGVG &amp; Associates<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Conditions for Transfer When the transfer instrument has been presented late or lost Transfer instrument has been lost Provided that where the instrument of transfer has not been delivered within the prescribed period(within 60 days from the date of such execution)or the instrument of transfer has been lost, the company may register the transfer on&#8230;<\/p>\n","protected":false},"author":1,"featured_media":2381,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120],"tags":[479,469,473,277],"class_list":["post-2374","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-secretarial-services","tag-secretarial","tag-secretarial-audit","tag-secretarial-service","tag-secretarial-support"],"_links":{"self":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/2374","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/comments?post=2374"}],"version-history":[{"count":5,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/2374\/revisions"}],"predecessor-version":[{"id":2382,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/2374\/revisions\/2382"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media\/2381"}],"wp:attachment":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media?parent=2374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/categories?post=2374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/tags?post=2374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}