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Share sale - stage payments - date of transfer

Can somebody confirm whether I am correct in my understanding of the following...

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Can somebody confirm whether I am correct in my understanding of the following...

One director is buying the shares of the other (retiring) director.  Shares valued at £3,000 and this is the agreed sale price.

Purchaser to pay £100 per month over 30 months.  I am fine with the tax side of things, just interested to know whether the shares would normally be transferred at the outset, i.e. when signing the sale/purchase agreement or whether the shares would only be transferred when the final installment of the deferred consideration is paid?

I think that the transfer would normally be made immediately (once the agreement has been completed).  Is that the norm?  What if the buyer defaults on future payments?

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17th Jun 2017 04:05

It's whatever the parties have agreed. No-one on here can tell you what that is. You will have to ask them.

If they haven't agreed on that point yet, and are asking for your advice, you will have to decide which one you are acting for. You won't be able to advise both of them.

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