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The Board can place restrictions on powers of the Committee e.g.

allowing transfer upto prescribed numbers- say upto 1,000 shares.

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If the documentation for transfer of share is in order, board shall register the transfer by passing a resolution.

Authority to transfer of shares can be delegated to one director and he can consider as “one man committee”.

Free transferability of share is one essential condition for Company form of business, subject to some restrictions under private companies. Statutory provisions related to transfer of share one should refer the following sources: Generally a Private Company is guided by its Article of Association.

As per Section 2(68) of Companies Act, 2013 Private Company restricts the transfer of shares and prohibit invitation to public to subscribe to any securities of the Company.


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