It is for company to accept your withdrawal application
once you have made payment for purchase of 5 per cent share you cannot back out of the deal
Transfer of Share
I had transferred X amount in the pretext of buying 5 % of Share in a Private Pharma Company. The cheques are given in the Name of the Company. The Director of the company shared me the Share Transfer deed document (Form SH - 4) but the "Consideration Received" amount is less than the amount i transferred and Company's Authorized Balance is also yes than the amount i transferred to the company account. I want to withdraw the idea of buying the Share. How do i get back the money that i paid to the company.
Asked 6 years ago in Business Law
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8 Answers
1. Apparently the Co. took what is loosely called as "on money /premium" and hence cannot be reflected in the "paid up capital" in the Balance Sheet.
2. You are entitled to 100% refund of your monies, PROVIDED the Share are NOT allotted to you.
3. Put them on Legal Notice for the discrepancy and ask them to refund money, stating that you are not Interested in their Shares.
IF YOU SUSPECT SOME FRAUD OR OTHER ILLEGAL:
1. You can file a Police FIR, requesting investigation and charge-sheet, for offences like cheating, intimidation, fraud, breach of trust etc.... against the person, supported with all relevant supporting documents.
2. IF the Police does not take action, THEN you can file private criminal case u/s 156(3) Cr.P.C., in the local Magistrates court, seeking directions to the Police to investigate and file charge sheet. The said Person may come down for settlement.
Refuse to sing the trasfer deed for entering less amount, if company insist, ask them for refund. Failure to which can file for cheating.
Dear Sir,
T+2 is the settlement cycle, if you sell on Monday, Wednesday, your money will be credited to your trading account. You have to raise withdrawal request with your broker and they will credit the amount to your bank account.
you must give notice in writing to the Director of the Company about intention to withdraw.
You can request the said company to cancel the said transaction if possible on the ground of the above error if not then you need to approach sebi or court for the same
You should send them a notice for withdrawing your investment on ground of less consideration mentioned in share certificate.
You issue a legal notice to the company seeking clarification about this discrepancy and failing to get a convincing reply you may apply for cancellation of the share certificate (if not listed in the share market), and ask for refund, but if it is a listed company then you cannot do anything about it other than sell it at the market rate.
