What is share transfer?
Share transfer is simply the process whereby a company transfers share ownership. This is usually done among the company’s shareholders.
To be eligible for share transfer, you have to be a shareholder of that company. People transfer shares for various reasons such as a gift to a loved one or as a way to raise capital. Shares can be transferred free without any restrictions. However, share transfer in private companies come with some restrictions.
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The share transfer procedure
If you want to transfer shares, you will need to follow the share transfer procedure.
This involves:
1. Notification: The party looking to transfer the shares is called the transferor. They notify the company of their intention to do so. This is done by sending a written request.
2. The duty of the company: It is the duty of the company to let other company members know about the availability of shares as well as their prices. The share prices are fixed by the directors. The company auditors can also fix the share price, which is based on book value.
3. Executing the share transfer deed: Both parties taking part in the share transfer deed will have to execute this process. This is done with the use of the share transfer form known as the (Form SH-4). This form has to be completed and sent to the company within two months from the date of execution.
Documents needed for share transfer
- The Share transfer deed: This is a legal document which the buyer and the seller has to sign off on.
- Share certificate: This is the original document that comes from the company.
- Board resolution: This is an arrangement to approve the transfer of the shares
- Receipt of the stamp duty payment: This is an evidence that the stamp duty payment has been done.
- Attestation of witnesses: All the witnesses have to sign up on the transfer deed.
- Proof of ID and address: Submit physical documents to verify your identification and address.
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When it comes to the transfer of company shares, you can benefit from our seasoned expert. Over the years, we have helped countless clients transfer shares from Party A to Party B successfully.
Frequently Asked Questions
You can easily transfer the shares of a public company from one party to another.
We offer professional share transfer services. Our work function ensures that we follow a structured process until we complete the procedure.
This happens when they terminate their membership of the company and pass on this share to the next person.
We have so many years’ experience when it comes to perform the required services with share transfer.
Unlike many other agents, our experts duly follow the necessary requirements and standards when carrying out this process.