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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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Corporate Law - Share Stock Transfer I would like to transfer

Resolved Question:

Corporate Law - Share Stock Transfer

I would like to transfer some shares from my name to another existing shareholder and the value is £5 only, what's the process?
Submitted: 3 years ago.
Category: Law
Expert:  tdlawyer replied 3 years ago.

tdlawyer :

Hello, welcome to the website. My name isXXXXX can assist you with this.

Customer:

Hi Tony

tdlawyer :

Hello.

tdlawyer :

Have you complete a stock transfer form as yet?

Customer:

yup

Customer:

this is a family ltd business

Customer:

and i believe the form does not need to be sent to HMRC for values under £1000?

tdlawyer :

Okay. As the value is £5 only, there is no need to tell HMRC about the transfer.

Customer:

right

Customer:

so, all we have to do is to basically take the form and old certificates to our board meeting with directors and approve it?

tdlawyer :

Correct!

tdlawyer :

Yes, that's right.

tdlawyer :

It's always easy when less then £1,000.

Customer:

because i was confused reading on HMRC's website, where it says the form needs to be sent to the registrar

tdlawyer :

You do need to fill out the reverse with the certificates on, but yes, that's it.

Customer:

the registrar in this case, is the company itself, isn't it?

tdlawyer :

Yes, the keeper of the companies' registers. :)

Customer:

yes certificate 1

tdlawyer :

Terminology is confusing sometimes.

Customer:

absolutely

tdlawyer :

Here is a useful guide, which is less confusing: http://www.informdirect.co.uk/blog/2013/5/15/how-to-transfer-shares-a-step-by-step-guide/

Customer:

and then it would be ourselves issuing the new share certificates too?

tdlawyer :

http://www.informdirect.co.uk/blog/2013/5/21/how-to-transfer-shares-what-a-company-must-do/

tdlawyer :

So that walks you through all stages including at the company's board meeting.

tdlawyer :

Yes, that's right.

Customer:

to be honest, i had looked at this website but I just wanted to double check with a lawyer

Customer:

and with regards XXXXX XXXXX stock transfer form, if we want the share certificates to go to the company accountant, then we include their stamp at the bottom of page 1, under "stamp or name and address of person lodging this form"?

tdlawyer :

:) Fair enough. Well, having done these things for a while now, I can tell you that's correct.

tdlawyer :

You wouldn't put the accountants details there, but yours, as you're lodging the form with the company.

Customer:

in what scenario we would put our external accountant's stamp in that box?

tdlawyer :

I don't see that you would - they're "just" your accountants. They're not lodging the form with the company, are they?

tdlawyer :

They're the ones that keep your paperwork, which is fine, but the person receiving the shares is presumably lodging the form?

Customer:

well, for our records we thought this could be a good witness to the transfer

Customer:

but if it will make it wrong then we won't do it

tdlawyer :

I don't think you need to worry about witnesses etc. to the transfer as you have a signed stock transfer form. There is no need for it to be witnessed.

Customer:

right so that box should really be left empty

Customer:

it's just that, they have already stamped it and it means we will need to fill in another form!

tdlawyer :

I don't think you really need to worry about it in all honesty!

Customer:

you mean it's ok to leave it like this with their stamp on?

tdlawyer :

Yes, I doubt you will have any problem at all.

Customer:

fair enough, but if you think it's safer not to have the stamp on, I will get the forms filled in again?

tdlawyer :

Either way, it's only the company registering them, and it's your company!

Customer:

but the stamp being there, wouldn't make the form invalid or anything?

tdlawyer :

No.

tdlawyer :

It'll be fine.

Customer:

ok great, thanks for your help

tdlawyer :

Thank you!

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