Difference between sale and transfer of shares in pvt ltd
akash
(Querist) 08 February 2013
This query is : Resolved
Hello Experts,
What is the difference between sale and transfer of shares in a private limited company?
If one person wants to sell his shares to someone else for the same value that he bought it at (i.e. no profit / no loss), should it be called "transfer of shares" or "sale of shares" in the agreement which gives the schedule of payment for the shares?
R.K Nanda
(Expert) 09 February 2013
depends upon terms of agreement.
Raj Kumar Makkad
(Expert) 09 February 2013
The sale itself do not ipso facto lead to transfer of shares. The sale becomes complete if the person holding the shares duly endorse the shares in the name of buyer by putting his signature on the specific form and if the buyer gets the removal of the name of seller and inserts his own name in his place in the proper register of that company then the shares get transferred.
RAJU O.F.,
(Expert) 09 February 2013
It is transfer of share valid through ROC.
Anirudh
(Expert) 09 February 2013
There seems to be complete confusion here.
Let the querist give his fact situation and then ask the query.
The fact is necessary, because sale definitely involves transfer, but every transfer need not be a "sale".
