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

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.