When a share transfer form is signed by the shareholder without filing in the name of the transferee and date of transfer and hands it over along with share certificate to the transferee thereby enabling him to deal with shares, it is called a transfer in ‘Blank’ or ‘Blank Transfer’. The ownership of shares in a company is generally transferred from one person to another by producing of a document from the seller to the buyer. This document is described as a ‘transfer instrument’ or ‘transfer deed’ or merely ‘transfer’. Because of the convenience associated with the blank transfer, the shares are usually sold and produced through blank transfer. Blank transfer results in saving of stamp duty. It is to be affixed only by the last transferee who lodges the shares with the company for the purpose of registration of transfer. The title of the transferee acquiring shares through a blank transfer shall invariably by subject to the title of the transferor.
A transfer in blank, when accompanied by a share certificate, brings to the transferee both the legal and equitable rights to the shares and also the rights to call upon the company to register the transfer.
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