Transferring shares

A The process used to transfer legal ownership of shares from one member to another, where the shares are sold or given as a gift. occurs when one In relation to a company limited by shares, means a person whose name has been entered in the register of members of that company as a shareholder in that company. of your A private company limited by shares incorporated and registered in England and Wales. transfers existing Shares in the capital of a company (sometimes also referred to as stock, for example in relation to US companies). Shares in a company give to the holders, known as shareholders, rights in relation to that company such as to vote, to receive dividends and to a return of capital. Holders of shares in a company own that company and the company, not its shareholders, owns the company's assets. to someone else. A share in the capital of a company (sometimes also referred to as stock, for example in relation to US companies). Shares in a company give to the holders, known as shareholders, rights in relation to that company such as to vote, to receive dividends and to a return of capital. Holders of shares in a company own that company and the company, not its shareholders, owns the company's assets. transfers, whether by a sale or a gift, affect your business because they involve a change of ownership of your A private company limited by shares incorporated and registered in England and Wales. .

This section provides guidance on the legal process you must follow in order to approve and register a The process used to transfer legal ownership of shares from one member to another, where the shares are sold or given as a gift., and guidance on what you should do when a In relation to a company limited by shares, means a person whose name has been entered in the register of members of that company as a shareholder in that company. dies or becomes Bankruptcy is a legal status of a person or other entity that cannot repay debts to creditors. Bankruptcy is imposed by a court order, often initiated by the debtor..

How to transfer shares

1.How do I transfer shares?

Legal documents for transferring shares

The share transfer process

Automatic transmission of shares (death or bankruptcy)

7.How do I deal with the automatic transmission of shares on the death or bankruptcy of a shareholder?

How to complete a stock transfer form

8.How do I fill in a stock transfer form?

Board minutes approving a transfer of shares

Use these board minutes of meeting to approve a transfer of shares in your company. It is important that you use these template board minutes when transferring shares, because if you do not follow the correct process the share transfer may be invalid and/or there may be disputes between the shareholders and the company over who owns the shares. Using these minutes can save you time and money in the long term. As an alternative to convening a board meeting and using these board minutes, your company can pass a written board resolution to approve a share transfer if you prefer. If your company has only one director, you should use our sole director resolution to approve any share transfer. Note these board minutes are drafted for a company with model articles of association. If your company does not have the model articles or has a shareholders’ agreement, you should check them for any provisions or restrictions on share transfers before using these minutes. For further guidance on the process to follow to transfer shares, see our detailed Q&A on Transferring shares . You can also purchase this document as part of the Share Transfer Toolkit .

£20 + VAT

Sole director resolution approving a transfer of shares

Use this sole director resolution template to approve a transfer of shares in your company. By using this template resolution, you ensure you follow the correct legal process and record the share transfer properly. Failing to follow the correct process can lead to a share transfer being invalid and legal disputes between shareholders and your company regarding the ownership of shares. Resolving these types of disputes can be time-consuming and costly. These sole director resolutions should be used if your company has only one director and your company has the model articles of association. If your company has bespoke articles of association or has a shareholders’ agreement, you should check the rules around share transfers in those documents before using this resolution. If your company has more than one director, you should use our template board minutes or written board resolution to approve a share transfer. For further guidance on the process to follow to transfer shares, see our detailed Q&A on Transferring shares . You can also purchase this document as part of the Share Transfer Toolkit .