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Transfer of shares to new shareholder

A company has a current share ownership as follows:

Person 1 - 49%

Person 2 - 51%

Person 3 - new shareholder

What forms/minutes do I need to complete to make it the following:-

Person 1 - 10%

Person 2 - 45%

Person 3 - 45%

Thank you in advance for any help or comments.

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By pawncob
20th Dec 2011 17:06

Just a Minute

 The  only records that require entries are the share register, to record the sale/purchase of the shares. (And a stock transfer form for each sale)  You need to decide who's going to sell him the shares. person 1 sells 39%, person 2 sells 6%

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avatar
21st Dec 2011 07:37

Read the Articles

There may be  a requirement for share transfers to be approved by the board in which case a board minute will be required.

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21st Dec 2011 13:31

As general guidance

1 - Stock transfer forms should be completed and signed. 
Person 1 transferring 39% to Person 3
Person 2 transferring 6% to Person 3

2 - Consider payment of Stamp Duty and arrange (if applicable)

3 - Have the transfers approved by Board Resolution (Chris Small is right check the articles, but this is normal procedure)

4 - Update the Register of Members

5 - Cancel any existing share certificates & issue new share certificates

There's nothing to file with Companies House at this stage, but the change in shareholdings will need to be confirmed the next time the company files it's Annual Return (AR01)

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By JAADAMS
23rd Dec 2011 10:52

You've done my article for me - mookgirluk!

The accountingweb editor, John Stokdyk, and I had 'Transfer of shares' on the list for articles to write for the New Year.

Now what shall I do in its place?!

Perhaps something about what happens if directors refuse to sanction the transfer? Procedure on bancruptcy or death of a shareholder? 

Anything else?

 

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