Transfer of Shares

What is a Transfer of Shares?

Daphne

Last Update 4 months ago

The transfer of company shares is a process in which a Limited company Shareholder sells or gifts their shares to someone else. Typically, the recipient of these shares are to new shareholders, however, you are still able to gift or sell shares to existing ones. It is a general procedure that arises for various reasons, such as; the company needs to raise additional investment.

• The Director will formally action any transfer of shares

• You will need to confirm the number of shares within the company and how many shares belong to each shareholder. You must know exactly how many shares you are transferring over, and, if it is a new Shareholder that the shares are being transferred to, the Director must confirm their name, date of birth, nationality, residential address, proof of ID, and relationship to the other shareholders in your company.

• The share transfer needs to be approved via a board meeting that should have detailed minutes to ensure a strong audit trail when updating Companies House. The board meeting will review the stock transfer form and agree to the shares being transferred all together.

• You will then need to complete a J30 form from Companies House. This form will be filled out by the Director and will detail the amount of shares being transferred, as well as details of the giver and receiver of the shares.

• You must then issue new share certificates, and any prior share certificates will be void.

• You must update your Confirmation Statement with Companies House to show the new shareholding structure within the company.

Please note, any Shareholder with over 25% of the shares will have to be listed as a Person of Significant Control (PSC).

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