Share Transfer

Share Transfer refers to the legal process through which ownership of shares is transferred from one shareholder to another in accordance with the Companies Act, 2013 and the applicable corporate compliance requirements. It is an important corporate activity because the shareholding structure of a company directly affects ownership rights, management participation, voting power, and investment interests within the organization. The process of share transfer involves preparation and execution of transfer documents, verification of share certificates, payment of applicable stamp duty, approval by the company wherever required, and updation of statutory records. In private limited companies, the transfer of shares is also governed by the Articles of Association which may contain restrictions or conditions regarding transferability of shares.