Dear Client,
Company assets can be distribute on its de registration among its share holders/owner. Than it can be gifted.
Transfer of property from company to the director
Our family is going through a partition We have a PVT limited company with 7-8 Properties on Division The properties will need to be transfered to another company (Run by one of the Directors) / or in the name of the Director Directly . Kindly let us know how it can be done in terms of a Gift Deed. (There is actual no sale of Property) or any other legal way to transfer the properties Thanks
Asked 7 years ago in Property Law
Religion: Hindu
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11 Answers
See the transfer deed for the share has to be prepared the authorised signatory of the company shall sign from company side.
Or an agreement can be prepared for partition of assets of the company
Company cannot execute gift deed in favour of director
a company is an artificial person, it cannot claim to get or give love and affection. Hence a company cannot give gifts and hence cannot execute a gift deed
Gift deed or partition deed both must be registered
company can gift its property to director, provided Article of Association permits it.
There are many Directors in the company and the company doesn’t intend to dissolve . Only 2 directors are retiring . Second can some one please explain the procedure step wise. How to go about this with least paper work and cost !
Asked 7 years ago
Without de registration, company proprieties cannot be alienate by any director. Criminal offense. Company carries it`s own self status. Legal person. IF any property will alienate than that will be on behalf and for benefit of company and after board resolution.
see firstly in board meeting a person has to be authorised to sign transfer deed in favour of retiring directors once the person is authorised and POA signed by all directors along with authorisation letter is given .a transfer deed can be executed in favour of director retiring .
Gift deed can be made
Company can either gift it to the new company or to the director
The gift deed needs to be stamped and registered
Concessional stamp duty is payable if gift is between specified relatives
In your case you need to check the local stamp laws
Also check the income tax act. Since gift is by company to a director/another company, there would be income tax implications in the hands of the donee
Since a company is an artificial person, it cannot claim to get or give love and affection. Hence a company cannot give gifts and hence cannot execute a giftdeed. ... However, there are various status under which a property can be transferred by a company or to a company without monetary consideration.
Under section 122 of the Act, one can transfer immovable property through registered gift deed. The immoveable property is transferred voluntarily without any consideration. To make the transfer valid it is mandatory to register a gift deed with the sub-registrar as per section 17 of the Registration Act, 1908, and section 123 of the Transfer of Property Act. A donor does not have the right to revoke or cancel the registered deed at a later stage unless there is a specific clause mentioned in the deed. Section 126 of the Act provides for a situation wherein a donor can revoke a gift deed
"gift means the transfer by one person to another of any existing movable or immovable property made voluntarily and without consideration in money or moneys worth, and includes the transfer of any property deemed to be a gift under section 4."
You can find the provisions in the articles of association for this.
Need to draft a gift deed and get it Registered from sub registrar office