Share Transfer Process comes up with a lot of questions, especially for companies and shareholders undertaking a transfer of shares dealing with it for the first time. Here are clear answers to what we're asked most often.
Is board approval always required for share transfer?
It depends on the company's Articles of Association — private companies often have restrictions requiring board approval.
Is stamp duty applicable on share transfers?
Yes, stamp duty generally applies on the transfer deed.
What is the difference between transfer and transmission of shares?
Transfer is a voluntary transaction between parties; transmission happens by operation of law, such as inheritance.
Does a private company restrict share transfers?
Often yes, private companies typically have restrictions on free transferability under their Articles.
Still Have Questions?
Every business situation is a little different, and Share Transfer Process is no exception. If your case doesn't fit neatly into the questions above, it's worth getting a second opinion before proceeding.
What You'll Typically Need
- Share transfer deed (Form SH-4)
- Board approval of the transfer, where required
- Valuation of shares, especially for related-party transfers
- Updated register of members
Need Help With This?
Leegal's team handles registration, compliance, and advisory work like this end-to-end, with transparent pricing and a dedicated point of contact throughout.
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