Section 465 in the 2013 act (which has not yet been notified) provides, inter alia, that the provisions of part IX A of the companies act 1956 which relates to producer companies. It shall be applicable mutatis mutandis to a producer company in a manner as if the companies act 1956 has not been repealed until a special act is enacted for producer companies. Hence the procedure laid down under the 1956 act for transfer of shares of a producer company shall continue to be applicable.
Note that save as otherwise provided in sub-sections 2 and 3 of section 581ZD. The shares of a producer company shall not be transferable.
As a member of a producer company, you can transfer the whole or part of your shares along with any special rights only to an active member of the producer company and only at par value.
Once you have decided to transfer a specified number of the shares you hold in a producer company with or without special rights to an active member of that company then do the following :
(a) make an application to the board of directors of the producer company for approval before transferring the said shares giving therein the reasons for such transfer.
(b) mention in the said application the name of the active member, his address and the number of shares to be transferred to him.
(c) also mention in the said application whether the said shares are with special rights or not.
the board of directors will consider, on the receipt of application. If satisfied in all respects give the approval to the member of transfer the shares to the person of his choice by passing a board resolution.
The approval from the board of directors on receipt , execute the transfer document and send it to the company along with a copy of the approval for necessary endorsement on the share instruments issued to the original member when he became a member.
Transfer of shares by legal representative ?
If there are more than one legal representative, give all their names as joint transferors.
Before it is signed by the transferor, present it to the prescribed authority who will give the date on it.
Fill the name or names of the transferee or transferees and get it signed by him or them.
The names of the transferors (the legal representatives) and the transferee are witnessed by two persons who shall sign their names and give their addresses.
Affix proper stamp on the transfer deed as prescribed by the Indian Stamp 1989.
It is normally 0.50p for transfer of shares of every hundred rupees.
If you are a nominee of any security holder then you transfer the shares or debentures standing in the name of the deceased security holder as if you are the deceased shareholder or debenture holder and follow the procedure mentioned above.
Lodge the transfer deed along with the share certificates to the company within 60 days of execution, in case the securities are held in physical form.
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