transfer of shares

Rajarshi Ghosh (Querist) 18 July 2011 This query is : Resolved
can the shares of a private limited company be transferred on credit? i.e. can the shares be transferred first & payment made by the transferee to the transferor at a later date, say after 3 months?

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Arun Kumar Bhagat (Expert) 18 July 2011
There is no bar it is private dealing, the company is not concerned with payment.

prabhakar singh (Expert) 18 July 2011
since it is a private co.,first go with its memorandum and article of association,then decide,otherwise there is no illegality in a contract which conveys title in present for a consideration to be paid in future,but if that promise fails,realization would be possible only by a suit.

Rajarshi Ghosh (Querist) 19 July 2011
thanks; but say, if the transfer is shown in the month 0 & the payments are made by the transferee in the month 4, what will be the date for calculation of capital gains tax - the date of transfer booking or the date of payment receipt?
again, can the company whose share are being transferred, refuse the transfer? even if such refusal is not expressly provided in the AOA?

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