Share Transfer in a Private Company can be declared null and void under certain circumstances in Pakistan:

Grounds for Nullification

1. Non-compliance with company law: Non-adherence to Companies Act 2017, Securities and Exchange Commission of Pakistan (SECP) regulations, or private company’s articles of association.
2. Invalid share transfer form: Incomplete, inaccurate, or unsigned share transfer form.
3. Lack of board approval: Share transfer without board approval, as required by the company’s articles or law.
4. Non-payment of dues: Outstanding dues, such as capital gains tax, stamp duty, or other fees.
5. Fraudulent or unauthorized transfer: Transfer made with intent to defraud or without authority.
6. Shareholder’s incapacity: Transfer made by a shareholder who lacks mental capacity or is under a legal disability.
7. Non-disclosure of material information: Omission of material information required by law or shareholder agreement.

Procedure for Declaring Null and Void

1. Board resolution: Pass a resolution declaring the share transfer null and void.
2. Shareholder approval: Obtain approval from shareholders, if required by the company’s articles or law.
3. SECP notification: Notify the SECP of the nullification, if applicable.
4. Court proceedings: File a lawsuit to declare the share transfer null and void, if necessary.

Consequences

1. Invalid share transfer: The share transfer is deemed invalid and has no legal effect.
2. Refund of consideration: The transferee may be entitled to a refund of the consideration paid.
3. Loss of rights: The transferee loses any rights acquired through the invalid share transfer.
4. Penalties: Directors, officers, or shareholders may face penalties or fines for non-compliance.

Consultation

For accurate information and updates, consult:

1. Securities and Exchange Commission of Pakistan (SECP) website.
2. Federal Board of Revenue (FBR) website.
3. Certified public accountants (CPAs) or company secretaries.
4. Business consultants.
5. Legal professionals specializing in corporate law.

Please note that laws and regulations may change. Consult official sources for updates.