“goods” means every kind of moveable property other than actionable claims and money and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale To determine that shares are movable or immovable, we require to consider the following provisions:-Īs per Section 2 (26) of the General Clause Act, 1897 “immovable property” shall include land, benefits to arise out of the land, and things attached to the earth, or permanently fastened to anything attached to the earth.Īs per Section 2 (36) of the General Clause Act, 1897 “movable property” shall mean property of every description, except immovable property.įurther, the provision of Section 2(7) of the Sales of Goods Act, 1930 defines the term ‘goods’ as follow: Whether shares are movable property or immovable property? (ii) with differential rights as to dividend, voting or otherwise in accordance with such rules as may be prescribed and The word share capital is defined under the provision of Section 43 (1) of the Companies Act, 2013 as ‘The share capital of a company limited by shares shall be of two kinds, namely:. The provision of Section 123 of the Transfer of Property Act, 1882 prescribe that “For the purpose of making a gift of moveable property, the transfer may be effected either by a registered instrument signed as aforesaid or by delivery.”Īs per the provision of Section 2 (84) of the Companies Act, 2013, “share” means a share in the * share capital of a company and includes stock. How the transfer of movable property to effected by way of gift? Key provisions relating to transfer of shares by way of GIFTīefore initiating the concept of transfer of shares by way of gift in accordance with Indian Laws, we would like to highlight certain key provisions which are directly related to this topic:-Īs per the provision of Section 122 of the Transfer of Property Act, 1882 defined “Gift” as -“Gift” is the transfer of certain existing moveable or immoveable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee. Other key provisions relating to the transfer of shares by GIFT.Procedure for transfer of shares by way of Gift.Key provisions relating to transfer of shares by way of GIFT.Procedure and Provisions on Transfer of Shares Key provisions relating to Transfer of Shares by way of GiftĢ. In this research paper, divides into the following parts:-ġ. Therefore, this research paper is prepared to investigate the scope of the transfer of shares by way of gift and its related provision. However, due to vastness of the provisions, I have limited the scope of this paper to Transfer of Shares by way of Gift. Now, Transfer of Shares may be by way of Sale, Mortgage, Pledge, Gift, Death, Succession, Inheritance, Bankruptcy, etc. And one of the major features of a Company is ‘Free Transferability of shares’ subject to few restrictions on Private Companies prescribed under the Articles of Association of the Company. In general terms, the word transfer means a conveyance of property, especially stocks and shares, from one person to another.
Article explains Key provisions relating to transfer of shares by way of GIFT, Provisions on Transfer of Shares, Procedure for transfer of shares by way of Gift, Documents required to be prepared and Other key provisions relating to the transfer of shares by GIFT.
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