In this third and final part of our company share transfer guide we will cover the shares successful transfer.
Before we begin, be sure to check out Part 1 that shows how to complete the transfer share form (including free downloads of the share transfer forms) and Part 2 that shows the point the company becomes really involved, approving the transfer documents.
These are important parts in the process of transferring company shares, and will broaden your understanding.
6. Company updates its statutory registers, cancels share certificate(s) and issues new certificate(s) required
Once the transfer is approved, the company should update its statutory registers as follows:
- Remove the previous shareholder in the Register of Members and reduce the shareholding if some of the shares have been transferred
- Add the transferee with the shares exchanged to them in the Register of Members and again, update any existing information
- Fill out details about the transferor and transferee in the Register of Transfers (if the company keeps one)
Once the Register of Members is updated correctly, the transferee will become the new holder of a share.
The share certificate position also needs to be updated as follows:
- Cancel the old share certificate
- Issue a new share certificate to the new shareholder
- Issue a new certificate for the shares kept by the transferor
- Refresh the company’s log of share certificates in issue as needs be
The old share certificate and the share transfer form are best kept by the company, unless the Articles of Association allow authority to destroy them. It is advised that both the old and new shareholders keep a copy of the share transfer form for their records.
7. Transfer confirmed to Companies House with Confirmation Statement
The details of each share transfer must then be included in the company’s next Confirmation Statement to Companies House. The Confirmation Statement confirms key information about your business and ensures it is up to date on the public register, it replaced the annual return from 30th June 2016. All incorporated companies registered in the United Kingdom are required to file a Confirmation Statement.
Company Share Transfer Guide complete! We hope our three part guide helps you during this procedure, following our seven steps will ensure the company share is transferred successfully.
For any assistance contact Companies999, we will be happy to help you!