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kalpesh veer (not)     29 October 2021

Conditional gift deed

Is it allowed to create a conditional gift deed for transfer of shares?
Incase company not reached ___% profit in next 5 years the shares will be retransfer to its donor.


Quick Summary
This discussion explores whether a conditional gift deed can be used to transfer company shares. The key question is whether shares can be retransferred to the donor if the company doesn't reach a certain profit level within five years. While conditional gift deeds are generally permissible, the transfer of title must be immediate and accepted by the recipient to be valid. If not, it may be considered a will. Conditions are valid unless they are void.

 2 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     29 October 2021

Gift Deed can be conditional but the Gift Deed will be valid if transfer of the title is passed on immediately by the donor and accepted by the donee. Otherwise it will be treated as Will. In a conditional gift deed it can be mentioned that the donor will live in the premises gifted to the donee, till he dies.

Pradipta Nath (Advocate)     29 October 2021

The conditional gift is valid, you need to check whether the condition imposed is void or not!


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