Question

Write a Letter regarding refusing the transfer of shares.

Answer 1

Blue Star Industries Limited

35/C, Shahu Chowk, Kolhapur.

http://wwwbluestar.indco.in

Tele No. : 24752152                                    7^th May 2012

Ref.: N/35/2012

Mr. Suhas Desphande       

B/12, Yash Apartment,

GB. Road, Thane - 400607

Sub: Refusal for transfer of shares

 

Dear Sir,

          With reference to the transfer of share certificate No. 0434 in respect of 100 equity shares of Rs. 10 bearing distinctive numbers 501 to 600 held in the name of S. Deshpande-

I wish to draw your attention to the provisions of Section 108 of the Companies Act 1956 wherein it is clearly mentioned that "A Company shall not register a transfer of shares in, or debentures of the company, unless a proper instrument of transfer duly stamped and executed by or on behalf of the transferor and by or on behalf of transferee and specifying the name, address, and occupation if any, has been delivered to the company along with the certificate relating to the shares."

On scrutiny of the documents submitted for transfer, we found the information provided is incomplete and not in compliance with the aforesaid provisions.

Hence, we have no option than to reject the transfer of your shares. We are communicating the refusal to transfer within a mandatory period of two months from the date of lodgement of the transfer.

Thanking you.

Yours faithfully,
For Blue Star Industries Ltd.
 Sd/-
Secretary