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Procedure for Share Transfer The transferors and the transferee must inform the Company of transferring the shares. Execute an instrument in form SH-4 along with stamp duty. Company should check Articles (AoA) for provisions for the transfer of shares. Board resolution for registration of transfer of shares.
The following are the core elements of a share transfer agreement : Definition of transfer of shares. Definition of consideration of shares. Date of transfer. Purchase price. Payment. Liability. Creditors. Representations and warranties.
This can be a complicated procedure and it is prudent to seek legal advice. To qualify as a private share issuer, transfers must be approved by your board or shareholder and you must fulfill all requirements stated in the articles of corporation or shareholders agreement.
A stock transfer agreement, also known as a share transfer agreement or a stock purchase agreement, is a legal contract that governs the sale and purchase of shares in a company. The agreement outlines the specific terms and conditions under which the shares will be transferred from the seller to the buyer.
A stock transfer form must describe any value being paid for the shares, identify the buyer and seller, and describe the amount and type of shares being sold. It must be signed by the seller. A share certificate. This document is given to the new shareholder to evidence that persons share ownership.
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Shareholders could sell to an unknown third party without the consent of the other shareholders. An unresolvable dispute might occur, or there could be conflicts about how to resolve it (such as a reluctance to go to court, but without an agreement to arbitrate)

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