 Transfer and transmission of securities  Punishment for personation of shareholder  Refusal of registration and appeal against refusal  Rectification of register of members

Section 56 (1-7) - Transfer and transmission of securities New Instrument for Transfer - Form No.SH.4 Previously it was Form No 7B on green paper with date stamp on it & valid for 2 months from stamped date No such date stamp on new Form No. SH.4 Duly executed instrument of transfer to be deliver to the company within 60 days Company shall thereupon register transfer & issue certificate within 1 month For Transmission only application is required other procedure is same

Procedure for Transfer of Shares Duly executed transfer deed to be presented to company within 60 days If approved by company issue certificate within 1 month If Co. company refuse to transfer Company shall send notice within 30 days of Transfer giving reasons for refusal Transferee can appeal to Tribunal Within 30 days of refusal Within 60 days – Where no notice of refusal is given Pvt. Ltd. Co Within 60 days of refusal Within 90 days – Where no notice of refusal is given Public Co.

Procedure for Transfer of Shares After hearing by Tribunal Tribunal can Dismiss Appeal Or by Order Direct -to register transfer / transmission & comply with order within 10 days -rectification of Register, pay damages if any If person contravene Tribunal Order Imprisonment AND Fine NOT Less than 1year Extend to 3 year NOT less than Rs.1,00,000/- Extend to Rs.5,00,000/-

If the instrument has been lost OR Not delivered within prescribed period of time Company can Register Transfer on such terms as to INDEMNITY as board may think fit

Transfer application made by transferor alone & of Partly paid shares _____________________________________________ Company shall give notice of the application to the transferee in Form No. SH.5 Transferee shall give NO OBJECTION to transfer within 2 weeks from the receipt of notice

Penalty for default for complying provisions of Section 56 (1 - 5) _____________________________________________ CompanyOfficer in default Fine - NOT Less than Rs.25,000/- Extend to Rs.5,00,000/- NOT be less than Rs. 10,000/- may extend to –Rs.1,00,000/- Depository with an intention to defraud a person, has transferred shares Liable under section 447

Circumstances for Rectification of Register of Members ______________________________________________ 1.Name of any person entered without sufficient cause 2. Name of person omitted without sufficient cause 3. if a default is made / unnecessary delay takes place in entering in the register, the fact of any person having become or ceased to be a member

Punishment for Personation of shareholder If any person deceitfully personates as an owner of any security or interest in a company, or of any share warrant or coupon issued in pursuance of this Act Imprisonment AND Fine NOT Less than 1year Extend to 3 year NOT less than Rs.1,00,000/- Extend to Rs.5,00,000/-