PROCEDURE FOR TRANSFER OF SHARES FOR COMPANY REGISTRATION IN PAKISTAN OR HOW TO TRANSFER SHARES FOR COMPANY REGISTRATION IN PAKISTAN.
Before I go into detailed process of how to transfer shares for company registered in Pakistan let me first explain for purpose of understanding what the meaning of transfer of shares is:
First see the below two definitions for understanding purposes
Transfer in law means an act through which the property is transferred from one person to another.
Transmission means the act through which the title of the property is transferred from one person to another through operation of law.
So transfer of shares means the procedure through which the shares from an existing shareholder is transferred from one person to another normally for some consideration whereas if such transfer is initiated through some act of law then it will be called as transmission and not transfer.
Under law all the shareholders of the company have the right to transfer their shares as and when they like except if the transfer of shares is explicitly denied by the articles of association of the company then it is not possible.
Now let us see the relevant provisions of the companies ordinance, 1984 regarding the transfer of shares and debentures:
The first relevant provision with regard to transfer of shares in the company states that every company has the right to transfer it shares in case the application is made. The transfer shall me made within 45 days from the date of application.
When a person submits to the company the share transfer deed and the company finds any deficiency in the trust deed the company shall notify within 30 days of any problem identified in the share transfer deed.
However if any different provisions are stated in the Articles of Association of the company that shall also be taken into consideration in fact they are going to supersede this process of transfer of shares.
The process for Transfer of shares for Company registered in Pakistan:
- Preparation of Share Transfer deed and submission with the company in case of Private Limited Company.
- The company only proceeds to transfer the shares if the transfer deed is proper and is duly executed by the transferor and the transferee.
- Approval from Board of directors confirming the transfer of shares.
- Changes in the Memorandum of the company stating the new pattern of shareholding against each member.
- Reporting the transfer of shares on the prescribed forms is the next and last step for transfer of shares.
If you want to hire our services to transfer shares in the company kindly send us an email at firstname.lastname@example.org or visit our contact us page for further information.
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