Document background
The Share Transfer Agreement Between Individuals is a crucial document used in Indian corporate transactions when one individual wishes to transfer ownership of shares to another individual. This agreement is essential for documenting the terms and conditions of the transfer, ensuring compliance with Indian corporate law, particularly the Companies Act 2013, and protecting both parties' interests. It becomes necessary when shareholders wish to sell their holdings, during succession planning, or as part of investment transactions. The document must comply with Indian stamp duty requirements, tax regulations, and any specific requirements in the company's articles of association. It typically includes details about the shares being transferred, consideration amount, representations about share ownership, and completion mechanics. This agreement is particularly important in private companies where shares are not traded on public exchanges and transfer restrictions may apply.
