Transfer of Shares
A transfer of shares may take place in a number of scenarios. These include a transfer between family members or business partners, the sale of all or part of the company and a transfer for tax planning reasons.
The transfer process requires the preparation and signature of various documents.
This section on the transfer of shares covers the documents which will be necessary for a standard transfer of shares in a private limited company, without a separate sale and purchase agreement for them. If the transfer is in connection with a negotiated sale and purchase of shares, see Buying or selling a company.
The process for the transfer will also depend on whether share transfers are restricted or otherwise regulated by the company’s Articles of Association or, if there is one, the company’s Shareholders Agreement. For example, the transfer may be subject to a pre-emption procedure, under which other shareholders have a right of first refusal to purchase the shares being transferred.