Transfer of Shares

What is a Share Transfer?

A transfer of shares occurs when an existing shareholder sells, gifts, or otherwise transfers their shares in a company to another person or entity. Unlike an allotment (which creates new shares), a transfer moves existing shares from one party to another.

Common Reasons for Share Transfers

• Selling a stake in the company to a new investor or partner
• Gifting shares to a family member
• Restructuring ownership between existing shareholders
• A shareholder exiting the business
• Transferring shares as part of a succession plan

The Process

We handle the entire share transfer process:

• Drafting the share transfer instrument (stock transfer form)
• Board resolution approving the registration of the transfer
• Checking for any pre-emption rights or restrictions in the company's constitution
• Updating the company's register of members
• Cancelling old share certificates and issuing new ones

Beneficial Ownership Updates

A share transfer can also affect beneficial ownership. Read our RBO update checklist after a share transfer and ask us to confirm whether an RBO amendment is included in your order. The CRO annual return and RBO amendment are separate processes.

Stamp Duty Considerations

Share transfers may be subject to stamp duty at a rate of 1% of the consideration paid or the market value of the shares, whichever is higher. Certain exemptions may apply. We recommend consulting with a tax advisor regarding stamp duty obligations.