Transfer of shares held by partnership firm in the name of retiring partner

Mayank Dhruv (Querist) 03 June 2017 This query is : Resolved
Shares are held by a Partnership Firm as investment, however as firm cannot hold shares in its own name, it is held in the name of the partner. Partner retires, then for transfer of shares to other existing partner is it required to execute share transfer deed and pay stamp duty?

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Rajendra K Goyal (Expert) 03 June 2017
Whether shares are in physical form? If so, share transfer deed need to be executed and stamp fee has to be paid.

If in demat form, transfer can be effected as off market transaction.

kavksatyanarayana (Expert) 03 June 2017
Agreed with the advise of Mr.Rajendra K Goyal sir.

Mayank Dhruv (Querist) 08 June 2017
Yes shares are held in physical form..is it falling under Section 89 of Companies Act 2013 requiring declarations only from registered holder and beneficiary??

Guest (Expert) 08 June 2017
Transfer of shares definitely require execution of share transfer deed by paying the prescribed stamp duty

Mayank Dhruv (Querist) 08 June 2017
Sir but just because the shares are not held by partner in his personal capacity and he holds it on behalf of the firm even then transfer is required? Just declaration to the company would not suffice?

Guest (Expert) 08 June 2017
Now you have made a vague question.

The owner of shares is he, in whose name the shares have been registered in the books of the respective companies. Beneficiary cannot be changed automatically if the partner has retired from the firm. Legal formalities is a must to acquire ownership by due transfer to be registered in the books of the particular companies of which the shares were held.

Mayank Dhruv (Querist) 08 June 2017
Thank you sir for solving my query

Guest (Expert) 08 June 2017
You are welcome.

Mayank Dhruv (Querist) 13 June 2017
In this case of transfer of shares from retiring partner to incoming partner how to determine consideration at which shares shall be tranferred and stamp duty shall be paid?