Transferring shares

It appears to be so easy to transfer shares. All you have to do is to go on to the internet, find the Registrar of Companies and change your shareholding! Wrong. Share transfers need to be approved by directors so suitable minutes need to be prepared and signed. A signed share transfer form will provide evidence the seller intended to get rid of their shares. The company also needs to keep a register of shareholders and this needs to be updated. It is not the same register as the one at the Registrar of Companies. Before even starting to put through a share transfer, you must consider the tax implications. Not only can losses be forfeited but also tax credits, and this can be very expensive. If you’re contemplating changing your shareholding, please confer with us before taking any action.

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