Transfer of Shares
The transfer of shares becomes a simple procedure when you use our professional service.
The transfer of shares in a company is governed by the provisions of the company’s articles of association and ss.770 to 782 of the Act. If the company has adopted model articles there will not be any restrictions on the transferability of shares. If the model articles have been amended they will need to be checked to make sure that pre-emption rights have not been included in the articles. Existing shareholders may decide to waive the pre-emption rights.
How to Buy & Cost
The board of directors will need to approve the transfer of shares.The transferor should complete a stock transfer form giving details of the shares to be transferred, their own name and address as transferor and the name and address of the transferee. The form should be signed by the transferor and, where the shares are partly paid, by the transferee.
The stock transfer form should be sent to the HM Revenue and Customs to be stamped together with payment of stamp duty, unless the transfer is exempt from stamp duty and has been signed and certified on the reverse. Stamp duty is payable by the purchaser of the shares when the consideration value is more than £1000. The current rate for stamp duty is 0.5% of the consideration value and is rounded up to the nearest £5. This applies whether or not the consideration is cash.
The stamped stock transfer form together with the original share certificate should be forwarded to the company for registration.
Upon the receipt of a completed stock transfer form the company should check that the details of the transferor are correct and that the share certificate is valid.
The transfer of shares requires approval from the board of directors who should also authorise the issue of a new share certificate to the transferee and of any balancing certificate to the transferor. The transfers must be rejected or processed within 2 months of receipt. Where rejected, the reasons for refusal must be provided.
Details of the transfer must be entered in the register of members.
Filing Requirements: Share transfers are not notified to Companies House. At the time of transfer no documents should be sent to Companies House. However, details of the transfer must be shown on the company’s next annual return.
We check the Articles of Association for any pre-emption clauses in favour of existing shareholders and carry out the necessary compliance work if there such clauses in the Articles of Association.
- Prepare Minutes of the Meeting for the Board to approve the transfer.
- Complete the stock transfer form with accuracy.
- If applicable, send the stock transfer form to the HMRC to pay the stamp duty.
- Cancel the previous share certificate and issue a new share certificate from the Company’s statutory register.
How to Buy & Cost
Cost: £50 +vat per company. This allows you to make up to two transfers.
How to Buy: Please contact us by email info@ eformations.co.uk or call us on 020 8232 5479 to discuss your requirements.