The difference between transfer and transfer of shares and obligations

The word “to transfer” It is an act of the parties whereby title to property is transferred from one person to another. (Person also includes legal entity, for example, company, legal entity, etc.)

The word “transmission” It refers to the transfer of ownership to the parties by effect of the law.

Transfer of shares means a voluntary transfer of ownership in certain shares from one person to another by presenting to the company a duly sealed and executed transfer instrument, by or on behalf of the transferor and transferee that contains their names, addresses and occupations together with the share certificates related to the shares to be transferred, while the transfer, on the other hand, implies the transfer of ownership in shares by application of the law when events such as death, insolvency or insolvency of a shareholder occur / bondholder, etc.

A transfer of shares or debentures is a procedure by which an existing shareholder or holder of debenture transfers their share (s) or debenture (s) to an existing shareholder, or to any other person, depending on the transaction and the circumstances. . of the case.

According to the law, any person has the right to transfer their share (s) and / or debenture (s) to any existing person or any other person; however, a private company may restrict by its statutes (AOA) the right to transfer the shares of the company provided that all relevant provisions of the Ordinance and AOA of the company are followed and due process is followed.

Legal provisions relating to the transfer and transmission of shares and / or obligations:

Sections 74 to 81 of the Ordinance deal with matters governing the transfer and transfer of shares and obligations.

Limitation on the transfer of shares and obligations:

Every company must transfer the shares, debentures or debentures within 45 days after the request.

The company, within 30 days or when the assignee is a central depository company, within five days from the date the instrument of assignment is deposited with the company, will notify the assignee of the defect or nullity who, one Once the identified defect has been eliminated, you must re-file the transfer deed with the company.

These conditions, in relation to a private limited partnership, will be subject to the limitations and restrictions imposed by your AOA, if any.

The company will not register the transfer of shares or obligations unless the corresponding transfer instrument has been delivered to the company, duly sealed and executed by the transferor and the transferee.