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Revalidation of the share transfer form

Postby jaya » Wed Apr 09, 2008 3:50 pm

Dear friends,

I want to know the procedure for revalidation of the share transfer form.

We have recieved the share transfer forms duly signed by the borrower alongwith the original share certificates. We have also received a power of attorney from the borrower authorising us to to sign all the transfer deeds etc. on their behalf. Since the share transfer form is valid only for a period of two months (correct me if i am wrong), we want to get the share transfer form revalidated.

What is the procedure for the same.

Would appreciate an early reply.

thanks & Regards,

Jaya
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Re: Revalidation of the share transfer form

Postby geetha » Wed Apr 09, 2008 4:24 pm

Dear Friend,

Whether yours is a private company or listed company.

If it is a Listed company the deed validity is one year.

Correct me if I am wrong.

Regards,

Geetha.
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Re: Revalidation of the share transfer form

Postby Madhukar dodrajka » Wed Apr 09, 2008 4:34 pm

Every instrument of transfer in the prescribed form with the date of such presentation stamped or otherwise endorsed thereon shall, after it is executed by or on behalf of the transferor and the transferee and completed in all other respects, be delivered to the company,-

(i) in the case of shares dealt in or quoted on a recognised stock exchange, at any time before the date on which the register of members is closed, in accordance with law, for the first time after the date of the presentation of the prescribed form to the prescribed authority under clause (a)

or within 12[twelve months] from the date of such presentation, whichever is later;


(ii) in any other case, within two months from the date of such presentation.
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Re: Revalidation of the share transfer form

Postby Madhukar dodrajka » Wed Apr 09, 2008 4:36 pm

If the validity period of the transfer deed has expired you will have to approach the Registrar of Companies for extending the validity of the transfer deed.
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Re: Revalidation of the share transfer form

Postby suracs » Wed Apr 09, 2008 4:39 pm

A transfer deed is valid for a period of one year from the presentation date indicated in the stamp affixed by the Registrar of Companies on the upper portion of the deed or the closure date of Register of Members immediately after the presentation date, whichever is later. Please check whether your transfer deed is still valid.
If the validity period of the transfer deed has expired then one has to approach the Registrar of Companies or www.mca.gov.in for extending the validity of the transfer deed. Alternatively, one may approach the registered holder/seller whose signatures appear on the transfer deed as seller to execute fresh transfer deeds.

Clarify please , if anything wrong....

SkS
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Re: Revalidation of the share transfer form

Postby Madhukar dodrajka » Wed Apr 09, 2008 4:41 pm

FORM 7C
THE COMPANIES ACT, 1956
Application for extension of time under section 108(1D)
[pursuant to section 108(1D)]
Registration of Companies.
Regional Directors.
Subject : Extension of time under section 108(1D) of the Companies Act, 1956.
Dear Sir,
I beg to apply for extention of time under section 108(1D) of the Companies Act, 1956, and request you to kindly accord the same at an early date.
The brief particulars in respect of my holding are as under:--
1. Name of the company (with address) whose shares are the subject of transfer
2. Name and address of the applicant seeking extension of time
3. Number and nominal value of the shares involved in each instrument of transfer
4. Name of the transferee
5. Date of execution of the transfer
6. Date of expiry of the period of validity of the instrument of transfer in question
7. Whether the applicant is still the rightful holder of the transfer forms
8. Name of the person in whose favour the share stand registered in the books of the company
9. Reasons given by the applicant for the extension of the time asked for
10. Particulars of payment of the application fee
Dated Signature:

INSTRUCTIONS ON THIS APPLICATION

1. It is made under section 108(1D) of the Companies Act, 1956, and it is presumed that the applicant and other parties to the transfer deed to be revalidated are fully aware of the contents and legal implications related to the matters of transfer of share. If should be complete in all respects and accompanied by necessary fees. Extension of validity will be provided for a specified period from the date of revaluation based on the contents of the application. Responsibility for the truth, correctness and legal validity of this application and the transfer deeds related thereto rests entirely with the applicant and extension will be provided based on this.
2. Where the transferees are companies, compliance with the provisions of sections 49 and 372 (if applicable) of the Act should be ensured by the applicants to the satisfaction of Registrar of companies.
3. Payment of fees: Table of fees per each transfer deed.
Nominal face value of shares involved in the transfer deed Fee payable
Up to Rs. 5,000 Rs. 25
Above Rs. 5.000 Rs. 50

Mode of payment : The amount may be paid in cash at the ROC’s Office or by Bank DD or pay order favouring to be attached to the application. Particulars of payment such as cash or DD or pay order No. and to be furnished in column No. 10 of the application.
4. Attestation:-- In case of transfer deeds requiring attestation (in cases like thumb impressions, marks, signature differences, etc.) the attestation may be done on the transfer deed itself by a Magistrate, Special Executive Magistrate, Notary Public or a similar authority holding a public office and authorised to use the seal of his office, member of a recognised stock Exchange through whom the shares are sold or a manager of the transferor’s bank.
5. Applications can be lodged at the cash counters of the offices of the registers of Companies.]
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Re: Revalidation of the share transfer form

Postby jaya » Wed Apr 09, 2008 5:19 pm

Dear friends,

thanks for your replies....in our case, the shares of the company have been pledged with us as security for a loan given by us alongwith duly signed transfer forms and the share certificates and the power of attorney to do the needful on their behalf. The shares would be transferred to us in the event of default by the borrower.

My query is whether revalidation is to be done only in the event of default or it needs to be done on the expiry of one year or two months as the case may be during the tenure of the loan.

thanks & Regards,

Jaya
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Re: Revalidation of the share transfer form

Postby srinivasaraghavan » Thu Apr 10, 2008 9:47 am

The revalidation need not rather should not wait for default to occur. As a matter of fact prudence calls for keeping the document always current, especially when it involves security.
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Re: Revalidation of the share transfer form

Postby jaya » Thu Apr 10, 2008 10:36 am

thanks for the reply....but if the tenor of the loan is 5 years....then do we have to keep revalidating the form....what is the extension period generally granted...presume it would around a month....wouldn't getting fresh transfer forms signed by the borrower be a better option...presume that can be done...

thanks & Regards,


Jaya
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Re: Revalidation of the share transfer form

Postby srinivasaraghavan » Thu Apr 10, 2008 10:57 am

It is because U asked for revalidation the reply was on those lines.

Yes. For long tenor loans you have no other option but to keep renewing the transfer deed. But remember, it carries a risk of the borrower delaying or avoiding to sign the fresh deed and at that time what recourse you should have, should have been spelt out in your loan agreement with him. I mean, the failure to renew the documents of security should have been listed as an act of default in the agreement for triggering the transfer.
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Re: Revalidation of the share transfer form

Postby jaya » Thu Apr 10, 2008 11:04 am

gen a POA is obtained from the borrower which includes among other things, signing the transfer deeds on their behalf...and to do all acts and deeds necessary for that purpose..so presume that would allow us to sign the transfer forms on behalf of the borrower...
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Re: Revalidation of the share transfer form

Postby srinivasaraghavan » Thu Apr 10, 2008 1:14 pm

If there is a legal POA then it is that much more easier. But again, the POA is accountable to the principal and therefore he has to justify his action. It is therefore necessary that the acts of default are defined without any ambiguity, so that annulment of action by a court of law does not take place. Nothing like direct execution.
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Re: Revalidation of the share transfer form

Postby jaya » Thu Apr 10, 2008 1:22 pm

thanks a lot for your replies..

regards,

Jaya
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Re: Revalidation of the share transfer form

Postby Madhukar dodrajka » Thu Apr 10, 2008 1:45 pm

Are multiple revalidation of transfer deeds possible??????????????????????
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Re: Revalidation of the share transfer form

Postby anjalithukral » Wed Jul 21, 2010 11:27 am

Hi

i also need help in this matter,

are multiple revalidation allowed and where is the form 7C to be sent is it where the companys registered off is there?

Further if the cos shares are listed and when they were pledged 5 years back they were in physical form

i want to dematerialse but may not encash it right now
pls advice
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