Shares may exist with a company that are partly paid or unpaid. But, to avail the maximum benefits, you would have to convert it to fully paid shares. In order to completely transfer unpaid or partly paid shares, you would have to fill the J10 form. This stock transfer form requires the signatures of both the transferor and the transferee. This form serves as a contract which entitles the transferee to be liable for all future calls on the shares he holds.On signing the form, the terms are precisely understood and the stock owner would be liable to the calls and the company would not be held responsible in any way. The form needs to be filled in correctly and only then, it would get duly accepted by the company. Once the company accepts the J10 form, they would have to update the details about the transfer and the name of the transferee in their database. Here is a guide about how you are supposed to fill in the J10 form so that it gets accepted by the company and leaves no scope for any confusion or ambiguity.It is a mandate that you make use of bold letters and a Black pen, preferably a ballpoint pen. The steps towards filling each of the columns in the form are mentioned below.
a) Consideration
If it is a transaction where the stocks are being traded for money, enter the transaction amount. If there is no money involved, fill in as NIL.
b) Full Name of Undertaking
Enter the complete name of the company, of which shares are being traded.
c) Full Description of Security
To know more about the full description of the company, have a brief look into the certificate that is issued by the company. This would give you clear information about what you are supposed to fill in.
d) Number/Amount of Shares, Stock or Security, if any
The total number of stocks, units of stocks or the amount of stocks worth that are involved in the transaction have to be mentioned in words and should be spelled out in block letters too.
e) Transferor
All the details such as the name, present residing address etc. are to be mentioned in the details of the transferor column. Also, if it is a joint account, there is a need to mention all the stakeholder details. Note that the address to be mentioned is of the first stakeholder and it would be the primary address for future correspondence, if any.
f) Transferee
Similarly like transferor, the names of joint or individual to-be owners are to be mentioned. Also, the address where further communication and proceedings have to be corresponded to should be mentioned in the address column. Unlike the other standard share transfer forms, J10 requires both the parties to sign in the form.
g) Date
The date on which both the parties duly sign the form to initiate the deal should be mentioned.
h) Person Lodging the Certificate
In this column, details of the person who would lodge the J10 form with the company have to be mentioned. It is a good practice to have someone apart from the two parties involved to lodge the certificate.If you found this blog helpful you can read more insightful articles in our business news section, we post daily new articles and hand tips and tricks including guides for your business.
