Q.What is Form SH-4? Within what time must it be delivered to the company?
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Start your 14-day free trial to unlock the full solution →No transfer of shares can be registered by a company unless a proper instrument of transfer is presented to it — the Companies Act, 2013 does not permit a company to record a change of shareholding merely on the strength of a private letter, receipt or oral agreement between the transferor and transferee.
Form SH-4 is this prescribed instrument, set out under Rule 11 of the Companies (Share Capital and Debentures) Rules, 2014, made under the authority of Section 56. It must state the particulars of the shares being transferred, the name, address and occupation of the transferee, and must be duly stamped, at the stamp duty rate applicable to transfer of securities, and dated. It must then be executed — signed — by or on behalf of both the transferor and the transferee, since a transfer, being a bilateral transaction, requires the consent of both parties to be valid.
On the question of timing, Section 56(1) is specific: the duly executed Form SH-4, together with the relevant share certificate (or, where no certificate has been issued yet, the letter of allotment), must be delivered to the company within sixty days from the date of its execution. This deadline exists to keep the transfer process moving without indefinite delay, and to reduce the risk of stale or disputed transfer instruments being presented long after the parties' circumstances have changed. …
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