Transposition of Shares - Application Letter to Company format

The word Transpose, as per Oxford Dictionaries, means 'Cause two or more things to exchange places' or 'Transfer to a different place or context'. Transposition of shares means change of order in which names of joint holders appear in a share certificate or in a demat account.

For example: If Mr. Harry and Ms. Emma are holding 10 shares in Qwert Pvt Ltd, and in their share certificate Mr. Harry's name is mentioned first and Ms. Emma's name is mentioned under it, then Mr. Harry is called the first holder and Ms. Emma is called the second or joint holder. If they want to change this order and make Ms. Emma the first holder and Mr. Harry the second holder, they have to request to the company or their Registrar & Share Transfer Agent (RTA) or the stock trading company where demat account is held.

How to apply for change: At first, it'd be advisable that you contact the company/ RTA/ stock trading company to find out the documents required for this and if they accept requests only in specific format, then you can check with them for such specific forms. You can find their address, to where all the documents have to be sent, on their official website.

Or else you can write a letter with all the necessary details and enclose the required documents along with it and send to the company for doing the needful. Following format could be useful.

SAMPLE #1

(In case shares held in Physical certificate)

Date: .................

From

(Name of the Shareholders)

(Address, Phone Nos.)

To

(Name of the Company / RTA)

(Address, Phone No.)

Sub.: Application for Transposition of shares

Dear Sir/Madam,

We, the undersigned, are currently holding the following securities in the (name of the company).

(1) Folio no.: ................

(2) No. of securities: ..................

(3) Type of securities: ....................

(4) No. of share certificates: ...............

We kindly request you to transpose our holdings in the following order in the register of members of the company.

1st holder: (name of the shareholder)

2nd holder: (name of the shareholder)

Original share certificates are enclosed herewith. The fresh share certificates may kindly be sent to our registered address.

Kindly do the needful and oblige. Please communicate once it is done.

Thanking you!

Yours faithfully,

signature

(Name of the First Holder)

signature

(Name of the Second Holder)

SAMPLE #2

(In case of transposition of physical shares as per order of joint holders' names in Demat account and demating request)

Date: ...................

From

(Name of the Shareholders)

(Address, Phone Nos.)

To

(Name of the Stock Trading Company)

(Address, Phone no.)

Sub.: Request for Transposition of Shares

Dear Sir/Madam,

We are having a demat and trading account in your company. We wish to have our following shareholdings transposed in the order in which we have an account with you. Kindly note the following information:

(1) DP Id: ....................

(2) Client Id: ...............

(3) Company unit: (Name of the Company)

(4) No. of shares: ...................

(5) Type of shares: .................

(6) No. of share certificates: ..................

The original share certificates along with the Dematerialization Request Form for demating of the above mentioned shares are enclosed herewith.

Kindly do the needful and communicate once it is updated.

Thanking you!

Yours faithfully,

signature

(Name of the First Holder)

signature

(Name of the Second Holder)

Letter of Undertaking for Issue of Duplicate Dividend Warrant

When a shareholder applies to the company for issue of duplicate dividend warrant as he has lost/misplaced the original dividend warrant or if it's stolen, then the company may ask some documents from him in support of this viz. police FIR copy, affidavit / indemnity bond, undertaking letter, photocopy of original warrant, identity and address proof of shareholder, etc.

In a letter of undertaking, the shareholder undertakes to pay the company in future all expenses or losses suffered by the company or make good the claims in connection with the duplicate dividend warrant issued to him.

For example: (1) Suppose someone else finds and encashes the original dividend warrant, then the company suffers loss for the same transaction. (2) Suppose the shareholder is lying about losing the original dividend warrant and encashes it later on. In all these cases, the company upon knowing about this will ask the shareholder to pay back the additional amount paid to him.

Following format of letter of undertaking could be useful. The letter can be addressed to either the Board of Directors or Company Secretary or Secretarial Department of the Company. Please contact the company and clarify the procedure before going ahead.

FORMAT

(Letter of Undertaking)

From:

(Name of the Shareholder)

(Address, Phone no.)

To:

The Company Secretary / The Board of Directors

(Name of the Company)

(Address, Phone no.)

Sub.: Issue of Duplicate Dividend Warrant

Ref: Folio no. / DP Id. ........................

Dear Sir/Madam,

I/We, (name of the shareholder(s)), residing at (address), am/are currently a shareholder of your esteemed company. My shareholding details are as follows:-

(1) Folio No. ........ / DP id. .......... and Client id. .............
(2) No. of shares: ......
(3) Face value: ..... each
(4) Distinctive nos.: from ... to ...
(5) Type of shares: .............

I/We understand dividend warrants were issued to me for the Financial Year 20..-.. with respect to the above mentioned shares. But unfortunately, I have not received the same yet / the said dividend warrants have been misplaced/lost somewhere during transit. Hence, I/We have not been able to encash the said dividend warrants.


Therefore, I hereby kindly request you to issue duplicate dividend warrants to me for the said financial year 20..-.. for my shareholding. In consideration of the company accepting my request and issuing the said duplicate dividend warrants in lieu of the lost/misplaced original dividend warrants, I/we shall indemnify the company for claim which may be made by any other person holding the original dividend warrant or claiming the payment due thereunder and towards all losses and expenses incurred by the company in consequence of such duplicate dividend warrant being issued to me/us.

Further, I/We undertake to have the said original Dividend Warrants delivered to the Company at our costs if the same is found or received by me/us at any time in future.

Kind request to do the needful at the earliest.

Thanking you!

Yours faithfully,

signature

(Name of the Shareholder)

Witnesses:

  signature                              signature
(Name of the Witness)         (Name of the Witness)
(Address of the Witness)     (Address of the Witness)

Date: .....................

Place: ....................